The National Power Corp. (NPC) pushed closer to finalizing the customized bidding documents needed to implement the accelerated hybridization program (AHP) fast-tracking the establishment of renewable energy (RE) projects in off-grid areas.
The AHP will allow the private sector to put up RE generation plants to supplement or replace the operations of NPC’s Small Power Utilities Group (SPUG) diesel power plants in off-grid areas.
NPC said procurement under AHP will be through public bidding as required by the General Procurement Reform Act.
“The SPUG diesel power plants are grouped into clusters wherein four clusters will be piloted for procurement. These are clusters in Batanes, Palawan, Bicol and Tawi-Tawi,” said Fernando Martin Roxas, NPC president and chief executive officer, in a statement.
Roxas said the NPC invited private entities to bid and present financial and technical offers for clusters that catch their interest as the winning bidder will be recognized as renewable energy power provider and awarded with a renewable energy power purchase agreement.
The NPC said the AHP also aims to reduce the universal charge for missionary electrification subsidies, the use of diesel fuel and its cost and provide the mechanism that meets the renewable energy standards in off-grid areas.
“In essence, a portion of the electricity that NPC would produce using its diesel power plant will be replaced with the generated electricity by the RE facility of the REPP, which in turn reduces the cost to NPC and the government. If this model is carried out, this will represent substantial savings for the corporation and will ultimately redound to the benefit of the Filipino people,” Roxas said.
He earlier said the goal is also to run all SPUG plants with 100 percent RE beginning 2028 or 20230.
The NPC supervises 278 SPUG power plants nationwide.
