Six firms mull investments in renewable energy

MANILA, Philippines - State-owned National Power Corp. (Napocor) is talking with at least six power generating companies to provide power in small power utilities group (SPUG).

Napocor president Froilan Tampinco told reporters over the weekend that the six firms “have met and explored with Napocor opportunities for investments and cooperation in the use of renewable energy sources for possible power generation.”

He said they are currently talking with Sta. Clara Power Corp. and Korea Electric Power Co. (Kepco) for the construction of two hydroelectric power facilities.

The Napocor chief said the company is exploring the possibility of putting some solar power facilities with state-owned Philippine National Oil Co. (PNOC)-Renewables Corp. (PNOC-RC).

Tampinco said they are likewise studying possible investments with Enertine and Clenergen for the setting up of biomass plants.

For wind-diesel power plant, he said they are discussing with Pamatec/Vergnet.

Once all the power plants of Napocor are privatized, the power generation firm will be focusing its operations on running the SPUG. SPUG are power generating units that supply power to off-grid customers.

SPUG is Napocor’s missionary electrification arm, servicing 78 small islands and eight off-grid areas. It operates 304 generating units with a total rated capacity of 129 megawatts (MW).

It has 42 customers or off-taker distribution utilities, consisting of 39 electric cooperatives and three local government units.

SPUG rates are higher than main grid rates because they are still heavily subsidized. The cost of producing power in the off-grid areas are estimated at P10 to P11 per kilowatt-hour.