On July 26, 2024, the Philippine National Oil Company (PNOC) and the National Power Corporation (NPC) signed a landmark Memorandum of Understanding (MOU) to collaborate on the testing of solar and wind hybrid systems utilizing vertical axis wind turbines in NPC’s Small Power Utilities Group (SPUG) areas. This initiative marks a significant step towards sustainable energy solutions for isolated and off-grid regions in the Philippines.
The MOU was signed by Mr. Oliver B. Butalid, President and CEO of PNOC, and Mr. Fernando Martin Y. Roxas, President of NPC, at the Energy Center in Bonifacio Global City. This partnership underscores the commitment of both organizations to innovate and reduce dependence on diesel fuel, particularly in off-grid areas.
The collaboration 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, and facilitate the integration of the hybrid system into their existing infrastructure. Additionally, NPC will dispatch the generated electricity and remit its value to PNOC.
PNOC, on its part, will select feasible sites, install the hybrid system, cover necessary expenses, and jointly monitor and evaluate the system’s performance with NPC.
President Butalid highlighted that the MOU with NPC is a significant milestone for PNOC, aligning with Arrow 3 of its Strategic Arrows, which positions PNOC as a social enterprise. He said the company would deploy the first few units to Masbate, hoping to scale up the project once it is proven economical and efficient. “This will greatly impact the people of Masbate and also the Filipino people because this will hopefully reduce, overtime, the subsidies for these SPUG areas,” President Butalid said.
President Roxas emphasized that the partnership with PNOC will reduce generation costs and benefit Filipinos in SPUG areas. “Hopefully, we can scale this up to all existing SPUG areas and soon-to-be energized areas that are in the planning stages. May we all reap the benefits of the success of the implementation,” Roxas said.
This 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.
