The Philippine National Oil Company (PNOC) and the National Power Corporation (NPC) have agreed on a strategic partnership to rapidly accelerate renewable energy development across off-grid communities in the Visayas, following the signing of a Memorandum of Understanding (MOU) on May 5, 2025.
The agreement, signed by PNOC President and CEO Oliver Butalid and NPC President Fernando Martin Roxas, marks a significant step toward the hybridization of seven diesel power plants (DPPs) currently operated by NPC. The signing took place during a two-day planning workshop hosted by NPC’s Small Power Utilities Group (SPUG) in Lahug, Cebu.
Hybridizing a diesel power plant means integrating a diesel generator with other energy sources or technologies, like renewable energy (solar, wind) or energy storage systems (batteries), to improve efficiency, reduce fuel consumption, and lower emissions. The diesel generator typically provides reliable baseload power, while the additional systems supplement or optimize energy output.
The workshop united stakeholders from key government agencies, including the Department of Energy, to discuss the technical, logistical, and regulatory aspects of implementing hybrid systems across identified sites.
According to PNOC, the collaboration supports its broader mission to deliver cost-effective and sustainable energy to Geographically Isolated and Disadvantaged Areas (GIDAs), especially in the Visayas and Mindanao regions. These areas often rely on diesel-fueled generators for electricity—an arrangement that is both costly and has a negative effect on the environment.
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Photo Credit: PNOC LinkedIn Page
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