The National Power Corp. (NPC) eyes running at least 25 percent of facilities classified under the Small Power Utilities Group (SPUG) on renewable energy (RE) power over the next two years.
SPUGs are often in island communities separated from the main transmission grid whose operations are funded by revenue from power sales and from the universal charge collected from consumers.
At present, most SPUGs are powered by diesel-fired generators numbering 281 in 189 municipalities across 35 provinces in the country.
“Hopefully, the first 25 percent would happen next year and then work on the rest of the 75 percent after that,” said Fernando Martin Roxas, NPC president and chief executive officer.
The plan is to hit 25 percent in two years and round the number to 100 percent in another four years, Roxas added.
According to him, only around 2 percent of SPUGS use renewable energy to power their operations, principally solar, which is easiest to harness.
But “we need to find other sources,” Roxas quickly added.
In March, the NPC signed a memorandum of understanding with APTI Renewable Energy Corp. promoting biofuel and biomass hybrid power for SPUG operations.
Roxas said this was part of their sustainability agenda of gradually reducing the dependence on fossil fuels and in its place use biofuel or palm oil as alternative, build a prototype bioenergy renewable energy power plant using palm oil and develop an integrated logistical and technical system for the production of biofuels and biomass.
He said biofuels and biomass are appropriate for SPUG operations since most areas can be converted into palm oil plantations.
Apart from managing SPUG power plants, NPC is also tasked with overseeing watersheds and locating indigenous sources of power.
