The National Power Corp. (NPC) targets initially converting 70 of the diesel-firing Small Power Utilities Group (SPUG) into renewable energy (RE) providers to speed up the hybridization of off-grid power plants in the country.
Fernando Martin Roxas, NPC president, told reporters he discussed the matter with about 18 developers the majority of whom have expressed interest to participate.
“Generally, the average rate in islands today as approved by the Energy Regulatory Commission is about P7 per kilowatt-hour. It is financeable. It is possible. We just need to organize our offer to them and we (NPC) should be the counterpart in the contracts,” Roxas said.
According to him, the developers he talked to include DMCI Corp., the Ayala group and local RE firm Alternergy.
The NPC supervises 278 Small Power Utilities Group (SPUG) power plants nationwide which are mostly diesel-firing entities located in remote areas not connected to the main grid.
Roxas said the plan is to hybridize the first 25 percent since the price of electricity in the regions is not attractive enough to remove the diesel units. “
We are looking to convert the first 25 percent into renewables then later on, if we achieve the first 25 percent, convert the remaining 75 percent using biofuel.”
Apart from reducing dependence on imported diesel fuel, the parallel goal of hybridization is to help boost domestic tourism, he added.
NPC is also asking RE providers to link their power projects with livelihood programs to optimize their impact in island provinces.
Roxas earlier said the greater goal is also to power all SPUG plants with 100 percent RE before 2030. More recent developments, however, has encouraged Roxas to believe the conversion could happen as early as 2028 when the current administration shall have completed its term.
Apart from managing the SPUGs, NPC also oversees the various watersheds in the country.
