PNOC to take on more active role in renewable energy development

MANILA, Philippines - After the sale of its geothermal and petroleum subsidiaries, government-run Philippine National Oil Co. (PNOC) will take a more active role in renewable energy development, particularly in hydropower.

PNOC president Antonio Cailao said the company’s newly-created PNOC- Renewable Corp. is planning to build a 30-megawatt (MW) hydropower plant in Luzon and is also looking at other various renewable energy projects.

“Renewable energy will be our focus this year,” he said.

PNOC, which is in the forefront of the government’s energy-related projects has firmed up several hydro projects last year.

It had entered into an agreement with Spanish firm Soluziana S.A. to conduct feasibility studies on the 5.6 MW Babuyan and the 6.8-MW Langogan hydropower projects in Palawan.

The Spanish government funded the study through a grant of 235,000 euros from Instituto de Credito Official.

PNOC has also been looking at developing the 23.5-MW Timbaban hyr-dopower in Ma. Cristina Madalag, Aklan. PNOC is also reviewing another hydro project, the17.8-MW Catuiran hydropower project in Calapan, Oriental Mindoro.

These projects are envisioned to help alleviate the looming power crisis in the Visayas. They are also expected to effectively displace a significant amount of diesel consumption in the province of Mindoro.

In March last year, a feasibility study was also completed on a 17.8-MW Sicopong hydropower development project in Sta. Catalina, Negros Oriental.

PNOC is currently studying the 25-MW Villasiga hydropower in Sibalom, Antique; the 20-MW Pasil hydropower in Kalinga; and the 3.7-MW Paracelis hydropower in the Mt. Province.

Last year, PNOC also announced that it bought the solar project operations of Shell Solar, a unit of Pilipinas Shell Petroleum Corp., for P17.2 million to provide affortable electricity to consumers in far-flung areas around the country.

According to the PNOC chief, the company is hoping to give subsidies to households that will use solar home systems as the cost of installation is still very expensive.

“We bought Shell’s entire operation so that now we can provide electricity to off- grid areas. We would take it to the next level and increase the number of installations,” he said.

Cailao noted that the company is currently scouting for suppliers that can provide solar home systems at a lower price.

“In the off-grid areas, there is about 15,100 households that have already been provided with the solar home systems. There are about three million households with no electricity. We want to subsidize the households with the solar home systems and we plan to double the number of installations,” Cailao said.