The Philippine National Oil Company (PNOC) and the National Power Corporation (NPC) have entered into a Memorandum of Understanding (MOU) to establish a trial run with the goal of integrating hybrid solar and wind systems at off-grid sites regulated by the Small Power Utilities Group (SPUG).
In a report by Manila Bulletin, the two companies said that this collaboration signaled an important milestone toward sustainable energy solutions for the Philippines’ remote and off-grid regions.
Under the agreement, PNOC and NPC looks to install test units of the hybrid system in select NPC-SPUG sites to evaluate their performance and feasibility.
NPC will identify potential demonstration sites, ensure the project design adheres to standards, aid in integrating the hybrid system into current infrastructure, and oversee the electricity dispatch.
Meanwhile, PNOC choose suitable installation sites, handle the hybrid system installation, cover associated costs, and work alongside NPC to monitor and assess the system’s performance.
PNOC President and CEO Oliver B. Butalid revealed that the pilot installation would take place in Masbate, aiming to reduce generation costs and decrease subsidies for residents. Should the project prove to be promising, this initiative will be expanded to other NPC-administered SPUG areas.
SPUG, managed by NPC, is responsible for providing electricity in off-grid areas following the restructuring of the Philippine power sector under the Electric Power Industry Reform Act (EPIRA).
Additionally, NPC President and CEO Fernando Y. Roxas said that this collaboration with PNOC would ease generation costs and extend energy to Filipinos located in SPUG areas, with hopes of reproducing the same results of the pilot project to all SPUG areas and islands still planning electrification.
PNOC added that the project includes integrating necessary instruments and accessories into existing diesel plants, focusing on areas with favorable wind conditions.
