NPC opens bidding for hybridization project

By Lenie Lectura – March 13, 2025
from Business Mirror

The National Power Corp. (NPC) has commenced the bidding process for its hybridization program with the release of bid invites for the supply and delivery of renewable energy (RE) that will fuel diesel power plants in off-grid areas.

The 20-year bid contracts have an aggregate value of P3.42 billion.

The state firm’s hybridization program basically invites RE developers to build RE facilities in Batanes, Palawan, Bicol, and Tawi-Tawi. They will finance, design, construct, operate and maintain their own RE facilities and supply power to the grid corresponding to area of coverage for 20 years as a supplement or replacement to NPC’s diesel genset operation.

These off-grid areas are powered by NPC’s small power utilities group (SPUG) diesel power plants. The NPC wants these replaced with RE to reduce the rising cost of fuel to power these SPUG diesel plants, which are grouped into clusters.

The approved budget for cluster 1A-Batangas is P900 million; P960 million for cluster 4A-Palawan; P820 million for cluster 5A-Bicol; and P740 million for cluser10-Tawi-Tawi.

The NPC has scheduled the opening of bid offers on March 20.

“Bidding will be conducted through open competitive bidding procedures using the pass/fail criterion. Bidding is open to all interested bidders, whether local and foreign, subject to the conditions for eligibility,” it said.

The NPC is mandated to provide electricity to all far-flung areas not connected to the main grid through SPUG plants. It operates 281 SPUG plants.