The review of the Accelerated Hybridization Program (AHP) fast-tracking the establishment of renewable energy (RE) sources in off-grid areas is seen soon completed, the National Power Corp. (NPC) said.
Fernando Martin Roxas, NPC president and chief executive officer, told reporters at the sidelines of the Solar and Storage Live Philippines 2024 event in Pasay City that the actual bidding could be held at the end of the month or the following June this year.
According to Roxas, four of the 23 SPUG or small power utilities group clusters form the test case that includes the Tawi Tawi, Batanes, Bicol and El Nido.
“If this proves successful, we will apply it to the other power plants,” Roxas said.
The AHP will allow the private sector to put up renewable energy power plants to augment or replace existing NPC-operated diesel plants located mostly in off-grid areas.
At stake are 20-year contracts where NPC is the offtake party paying for the energy delivered to its switchyard, including losses, Roxas said.
“It is technologically agnostic, as long as it’s renewable energy. We will pay them the subsidized approved generation rate or SAGR,” Roxas said.
The commitment is for the NPC to pay the SPUGs 50 percent of any increase in the generation charge but nothing if the charge is lower than their bids.
“They have upside but no downside as the floor price is what they bid,” Roxas further said.
The NPC previously said the AHP seeks to reduce the universal charge for missionary electrification subsidy, the cost of diesel fuel and help bidders meet renewable energy portfolio standards in off-grid areas.
Roxas also previously said the goal is also to power all SPUG plants with 100 percent renewable energy from 2028 to 2030.
The NPC supervises 278 SPUG power plants nationwide.
