Napocor asks investors to join program promoting hybrid technologies
By Alena Mae S. Flores – September 10, 2023, 6:55 pm
from manilastandard.net
State-owned National Power Corp. is seeking investors in its accelerated hybridization project for the Small Power Utilities Group.
Napocor met last week with 80 potential players in AHP in an online and onsite market-sounding conference led by the Public-Private Partnership Center.
Napocor initiated the AHP to expedite the hybridization of SPUG power plants in far-flung islands and villages. It operates 281 SPUG plants across 190 municipalities nationwide.
The AHP aims to fast-track the use of hybrid technologies—diesel with solar or other RE sources to provide power to far-flung areas.
Napocor president and chief executive Fernando Martin Roxas said that with the AHP, the private power providers would be able to participate in renewable energy generation in SPUG areas.
“They shall develop, finance, construct and operate a renewable energy resource, and Napocor will be the off-taker of the electricity generated,” Roxas said.
The PPPC will evaluate and gauge the interest of the private sector in the bidding of the initial four clusters of off-grid areas—Batanes, Palawan, Bicol and Tawi-Tawi, and eventually the remaining clusters.
The AHP will use the existing Energy Regulatory Commission-approved subsidized approved generation rate as the cap for the bid offer.
Napocor said AHP would also reduce the use of the universal charge subsidies and fuel costs.
This will also help the electric cooperatives and distribution utilities meet the Renewable Portfolio Standards requirements for off-grid areas.
Napocor is mandated by the Electric Power Industry Reform Act of 2001 to electrify far-flung islands and communities that are not connected to the main transmission grid.
“We intend to push for hybridization for existing SPUG and to fully utilize renewable energy with energy storage systems for new areas. This will minimize the losses incurred from rising fuel costs and will eventually make our operations more sustainable,” Roxas said earlier.
The company will also use and deploy more solar home systems and install wind resource assessment in probable areas for wind farms.
“My ultimate goal is to convert all SPUG areas into 100-percent RE operations. What is good for the environment is likewise good for Napocor,” Roxas said.
