THE National Power Corp. (NPC) said it is testing the use of indigenous biofuels to power off-grid areas.
“The NPC is piloting the use of indigenous biofuels such as crude palm oil (CPO) and bioethanol from water lilies in diesel plants, as part of a broader effort to diversify energy sources and promote sustainable power generation,” NPC President and Chief Executive Officer Fernando Martin Y. Roxas told BusinessWorld in an e-mail.
The NPC focuses on serving remote and island areas not connected to the grid through its Small Power Utilities Group (SPUG).
As of June 2024, the company operates 165 SPUG plants, mostly diesel-powered, across 155 sites.
Following the recent spike in fuel prices, Mr. Roxas said the company is pursuing several initiatives to mitigate the impact on off-grid power generation, which he said were “already underway prior to recent global developments.”
He said that NPC is negotiating a government-to-government diesel import arrangement with Indonesia for SPUG plants to stabilize fuel supply at competitive prices.
The NPC has also signed with the Philippine National Oil Co. a memorandum of understanding to collaborate on hybridizing diesel power plants in the Visayas.
Mr. Roxas said the NPC has also been procuring and installing solar photovoltaic and battery energy storage systems in SPUG-managed diesel plants.
The company’s Accelerated Hybridization Program also allows the private sector to enter off-grid areas and set up renewable energy generation plants or facilities.
Private developers will complement diesel generation, with the aim of reducing fuel consumption by 25%, he said.
“Together, these strategies aim to stabilize and manage generation costs in off-grid areas, which can help reduce the subsidy burden under the UCME (Universal Charge for Missionary Electrification) and ease costs for on-grid consumers,” Mr. Roxas said. —Sheldeen Joy Talavera
