Off-grid areas should also be considered in RE switch – NAPOCOR chair

The National Power Corporation (NAPOCOR) says that off-grid areas continuously contribute to the consistent burning of fossil fuels. 

In the recently concluded Philippine Future Energy and Grid Summit, NAPOCOR President and CEO Fernando Roxas said that while the main grid’s share of renewable energy is currently at 24%, the same cannot be said for off-grid areas.

“That’s why in the off-grid areas…the private power producers are still burning around close to 600 million liters of fossil fuel over the country. And that’s purely unsustainable with the current price of fossil fuel. The government is losing.. something like 18 pesos per kilowatt hour (kWh) that we generate in diesel. That’s so expensive,” said Roxas.

Roxas added that because the government is set on limited funding, the corporation is developing a program encouraging the private sector to hybridize more than 165 power plants all over the country. 

NAPOCOR divided the power plants into 23 clusters, with plans to initiate the bidding process for their hybridization components once the necessary approvals for the bidding documents are obtained from the concerned agencies.

Roxas noted that residents in off-grid areas struggle to cover the full cost of generation and fossil fuel use. He emphasized that the government works each year to bring electrification to new islands, and this project could play a key role in ensuring the sustainability of these communities.

Meanwhile, power producers said that the main struggle with encouraging customers to consider Retail Competition and Open Access (RCOA) is the lack of information. 

Mabuhay Energy COO Jacqueline Castillo added that the distribution utilities as well as electric cooperatives, should already have the infrastructure in place in order to encourage the switch.

“They are the ones that are supposed to have the infrastructure ready to allow the customers to switch. The distribution utility has to have the correct meters in place. They need to have the proper documentation, the contract, the meeting, and three books in place. And even if the customer is interested… but if the deal doesn’t have the infrastructure in place, there’s no way to switch the customer,” said Castillo.

The Philippine Future Energy and Grid Summit gathered industry leaders and renewable energy developers to discuss the progress of the country’s energy transition, the opportunities ahead, and the pressing challenges that demand solutions.