Newly appointed National Power Corp. (NPC) president Jericho Nograles is committed to advancing the hybridization of its diesel-fired power plants with renewable energy (RE). Speaking to reporters over the weekend, Nograles acknowledged the challenges currently slowing the initiative but emphasized efforts to address these obstacles.
“We are reviewing the current approach and working on ways to overcome the delays,” Nograles said. He aims to improve the pace of the rollout, with positive results expected within six months.
Currently, diesel power plants generate electricity at an average cost of P30 per kilowatt hour, but NPC only collects about P7, with the government subsidizing the remaining P23.
The previous NPC leadership set a target to transition all Small Power Utilities Group (SPUG) diesel plants, mostly in off-grid areas, to 100 percent RE by 2028-2030. This involves bidding out renewable energy power producer contracts, with winners responsible for financing, designing, and maintaining RE facilities to replace or supplement existing diesel generation.
NPC currently manages 279 SPUG plants across the country, providing power to off-grid islands and communities. It also oversees transmission systems in provinces like Palawan, Masbate, and Mindoro, and is tasked with managing watersheds and exploring indigenous power sources.
