The National Power Corporation (NPC) has launched an initiative to hybridize diesel power plants with renewable energy (RE) sources in remote Philippine islands.
This project targets Small Power Utilities Group (SPUG) areas, including Batanes, Bicol, Palawan, and Tawi-Tawi, according to an NPC press statement.
NPC has allocated PHP 3.42 billion for the hybridization effort. Bids are due by March 20, 2025.
Each area has a tailored financial ceiling: PHP 900 million for Batanes, PHP 820 million for Bicol, PHP 960 million for Palawan, and PHP 740 million for Tawi-Tawi.
The project is expected to reduce electricity costs in these communities.
NPC’s approach invites bidders to finance, design, construct, operate, and maintain their own RE facilities, supplying energy to these areas for 20 years. This replaces aging diesel generators with cleaner, more affordable power.
NPC will evaluate proposals using a “quality-cost” framework to ensure reliable, long-term energy solutions suited to each area’s unique needs.
This initiative aims to bridge the energy gap between the Philippines’ urban centers and its far-flung islands.
In a related development, NPC and the Philippine National Oil Company (PNOC) have signed a memorandum of understanding to test solar and wind hybrid systems in remote areas.
This collaboration aims to reduce diesel fuel dependency and advance renewable energy technology in off-grid regions.
These efforts reflect a strategic push towards sustainable energy solutions in the Philippines.
By integrating renewable energy sources, the country aims to enhance energy security and sustainability, particularly in its most isolated regions.
