The National Power Corporation (NPC) on Thursday committed to begin the procurement phase of its accelerated hybridization plan (AHP) in the first two weeks of February 2025, marking a significant step toward integrating renewable energy (RE) into the state-run firm’s off-grid power plants. The AHP initiative involves private sector participation in the construction of RE generation facilities to supplement or replace the diesel-powered plants that currently operate in remote, off-grid areas.
NPC is in the final stages of preparing bid documents to ensure a transparent process and plans to post invitations to bid across multiple platforms, including its website and at the Philippine Government Electronic Procurement System. Last month, over 30 companies, including RE developers and foreign firms, attended a pre-procurement forum, highlighting the appeal of the program.
The AHP aims to replace up to 25 percent of diesel consumption with renewable energy sources, with the long-term goal of powering all of NPC’s Small Power Utilities Group (SPUG) plants with 100 percent RE from 2028 to 2030. NPC’s pilot clusters for the AHP focus on Bicol, El Nido, Batanes, and Tawi-Tawi, with 20-year contracts in place for private partners.
This development is expected to boost the country’s renewable energy capacity, reduce reliance on imported fuels, and support sustainable development in remote areas that rely on diesel generation. With 274 SPUG plants in operation across the Philippines, the NPC push for RE integration is a crucial step in advancing energy sustainability and ensuring energy access in off-grid communities.
