PPP Center, NPC gather potential players for the latter’s Accelerated Hybridization Project


The National Power Corporation (Napocor) on Thursday afternoon meets around 80 potential players for its Accelerated Hybridization Project (AHP) in an online and onsite market-sounding conference led by the Public-Private Partnership Center (PPPC).

Napocor initiated the AHP before the National Power Board chaired by the Department of Finance (DOF) early this year to expedite the hybridization of its Small Power Utilities Group (SPUG) power plants in far-flung islands and villages. Currently, Napocor operates 281 SPUG plants in 190 municipalities nationwide.

NPC President and CEO Fernando Martin Y. Roxas earlier said that with the AHP, the private power providers will be able to participate in renewable energy generation in SPUG areas.

"They shall develop, finance, construct, and operate a renewable energy resource and Napocor will be the off-taker of the electricity generated,” President Nani said.

After the market sounding, the PPPC will make an evaluation in order to gauge the interest of the private secor in the bidding of the initial four (4) clusters of off-grid areas – Batanes, Palawan, Bicol, and Tawi-Tawi, and eventually the remaining clusters as well.

The AHP will use the existing Energy Regulatory Commission (ERC)-approved subsidized approved generation rate (SAGR) as the cap for the bid offer.

Apart from fast-tracking the hybridization in SPUG areas, the program will also reduce the use of the Universal Charge subsidies and the fuel costs incurred by the Corporation. This will also help the electric cooperatives and distribution utilities meet the Renewable Portfolio Standards requirements for off-grid areas.

As mandated by the Electric Power Industry Reform Act (EPIRA), Napocor is responsible for the electrification of far-flung islands and communities that are not connected to the main transmission grid. Following its recent funding challenges resulting from surging fuel prices in the world market, Napocor has since been exploring innovative ways to fast-track the expansion of renewable energy in the areas it serves.