NPC to Hybridize Diesel Plants with Renewable Energy in Remote Islands

The National Power Corporation (NPC) has initiated a project to combine diesel power plants with renewable energy (RE) sources in remote islands of the Philippines. According to a statement from NPC, this initiative focuses on areas served by Small Power Utilities Group (SPUG), which includes Batanes, Bicol, Palawan, and Tawi-Tawi.

NPC has set aside PHP 3.42 billion for the hybridization initiative. Proposals must be submitted by March 20, 2025. Every region has a customized financial limit: PHP 900 million for Batanes, PHP 820 million for Bicol, PHP 960 million for Palawan, and PHP 740 million for Tawi-Tawi.

The initiative aims to lower electricity expenses in these areas. NPC's strategy encourages bidders to fund, design, build, manage, and maintain their own renewable energy facilities, providing power to these regions for a period of 20 years. This substitutes old diesel generators with cleaner, cheaper power.

NPC will assess proposals through a "quality-cost" framework to guarantee dependable, long-term energy solutions tailored to the specific requirements of each region. This project aims to connect the energy gap between the urban areas of the Philippines and its remote areas.

In a related update, NPC and the Philippine National Oil Company (PNOC) have entered into a memorandum of understanding to experiment with hybrid solar and wind systems in isolated regions.

This partnership aims to decrease reliance on diesel fuel and promote renewable energy innovations in off-grid areas. These initiatives demonstrate a movement toward sustainable energy options in the Philippines. By incorporating renewable energy sources, the nation seeks to improve energy security and sustainability, especially in its most remote areas.