The National Power Corporation (NPC) is optimistic on the full rollout of projects aimed at reducing the country’s reliance on fossil fuels this year. NPC president and CEO Fernando Martin Roxas said the Government Procurement Policy Board recently approved the terms of reference and bidding documents for initiatives under the accelerated hybridization plan (AHP), marking a significant step toward transitioning to renewable energy (RE).
The AHP seeks to invite private sector participation in the development of renewable energy plants that will augment or replace the diesel-powered generators currently used in NPC’s Small Power Utilities Group (SPUG) facilities. These plants serve off-grid areas across the country. Roxas revealed that the tender process for the four pilot clusters—Bicol, El Nido, Batanes, and Tawi-Tawi—will begin this month, with an expected contract award by May 2025.
The AHP will focus on 20-year contracts, with NPC acting as the offtaker for the energy produced. The plan is to reduce NPC’s diesel consumption by around 25 percent, with renewable sources stepping in to power these off-grid areas. However, Roxas noted that addressing the remaining 75 percent of fossil fuel reliance will require further initiatives, including the promotion of biofuels.
“Our second priority is developing an alternative fuel supply chain, starting with a pilot project for Western Mindanao,” Roxas said. A tender process for this initiative is expected to begin in Q2 of 2025, with an award scheduled for mid-year. The project will explore the use of biofuels, including palm oil, to power NPC plants in Southern Palawan and Western Mindanao, with a goal to complete one or both projects within 2025.
NPC is also planning a biomass application in Southern Luzon, expected to launch in early 2026, and is exploring multilateral funding to support these projects. Roxas reaffirmed the corporation’s long-term goal to transition all SPUG plants to 100 percent renewable energy by 2028-2030.
Currently, NPC oversees 274 SPUG plants across 238 areas in 188 municipalities in 34 provinces. These off-grid power plants are vital to the country’s energy access in remote regions, and NPC also manages transmission systems in island provinces such as Palawan, Catanduanes, and Mindoro.
