State-run Philippine National Oil Co. (PNOC) and National Power Corp. (NPC) on Friday signed a memorandum of understanding (MOU) to test solar and wind hybrid systems utilizing vertical axis wind turbines in the Small Power Utilities Group (SPUG) areas.
PNOC said Friday the initiative marks a significant step towards sustainable energy solutions for isolated and off-grid regions in the Philippines.
“We consider this a milestone because it fits with our strategy which is being a social enterprise. We want to introduce energy projects, especially new technologies in marginal areas,” PNOC president and chief executive Oliver Butalid said.
Butalid and NPC president Fernando Martin Roxas signed the MOU at the Energy Center in Bonifacio Global City.
The partnership underscores the commitment of both organizations to innovate and reduce dependence on diesel fuel, particularly in off-grid areas. It aims to install test units of the hybrid system in select NPC-SPUG sites to evaluate their performance and feasibility.
The project includes integrating necessary instruments and accessories into existing diesel plants, with a focus on areas with favorable wind conditions.
Under the agreement, NPC will propose potential sites for the technical demonstration, review the project design for compliance with standards, facilitate the integration of the hybrid system into their existing infrastructure and dispatch the generated electricity.
PNOC will select feasible sites for the installation, install the hybrid system, cover necessary expenses, and jointly monitor and evaluate the system’s performance with NPC.
The pilot project will be conducted in Masbate, aiming to reduce generation costs for residents and decrease subsidies shouldered by Filipinos. Once the technology is proven economical and efficient, there is plan to scale up the project.
Roxas said the partnership with PNOC would reduce generation costs and benefit Filipinos in SPUG areas.
He expressed hope that the project would be scaled up to all SPUG areas and even to islands that are still in the planning stages for electrification.
The project highlights the strategic importance of renewable energy in enhancing energy security and sustainability in the Philippines.
It also reflects PNOC’s and NPC’s shared vision of leveraging innovative technologies to address the country’s energy challenges.
