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In a major step towards enhancing sustainable energy solutions in the Philippines, the Philippine National Oil Company (PNOC) and the National Power Corporation (NPC) have signed a Memorandum of Understanding (MOU) to test innovative solar and wind hybrid systems in NPC’s Small Power Utilities Group (SPUG) areas. The agreement marks a significant commitment to reducing diesel fuel dependency and advancing renewable energy technology in off-grid and isolated regions of the country.
The MOU was formalized by Mr. Oliver B. Butalid, President and CEO of PNOC, and Mr. Fernando Martin Y. Roxas, President of NPC, at a ceremony held at the Energy Center in Bonifacio Global City. This collaboration will see the installation of test units of the hybrid system at selected NPC-SPUG sites, chosen based on favorable wind conditions.
Under the terms of the MOU, NPC will identify potential sites for technical demonstrations, review project designs to ensure they meet required standards, and facilitate the integration of the hybrid systems into existing diesel plants. Additionally, NPC will be responsible for dispatching the electricity generated and remitting its value to PNOC.
In return, PNOC will handle the selection of feasible sites, installation of the hybrid systems, and cover associated costs. Both organizations will jointly monitor and assess the performance of the systems to evaluate their feasibility and effectiveness.
President Butalid described the MOU as a pivotal moment for PNOC, aligning with its strategic goal of becoming a social enterprise. He highlighted that the initial deployment of units will begin in Masbate, with plans to expand based on the project’s success. “This initiative will significantly benefit the people of Masbate and the broader Filipino population by potentially reducing subsidies for these off-grid areas over time,” Butalid said.
President Roxas echoed the sentiment, emphasizing that the partnership with PNOC aims to lower generation costs and extend the benefits to all SPUG areas. “We hope to scale this project across existing and future SPUG locations, ensuring widespread advantages from its successful implementation,” Roxas noted.
This collaboration underscores the strategic importance of integrating renewable energy solutions in the Philippines, reflecting both PNOC’s and NPC’s commitment to addressing the country’s energy challenges through innovative technology and sustainable practices. |
