State firms team up to pilot solar, wind hybrid project

MANILA, Philippines — Philippine National Oil Co. (PNOC) has partnered with state-run National Power Corp. (Napocor) for the testing of solar and wind hybrid systems in remote areas of the country.

A memorandum of understanding (MOU) between the two firms that was signed yesterday aims to deploy the test units of the project in select small power utilities group (SPUG) areas.

Under the landmark deal, Napocor will identify potential sites for the technical demonstration, review the project design, integrate the hybrid system with existing infrastructure, and manage the distribution of generated electricity.

On the other hand, PNOC will be responsible for choosing feasible sites for the installation, setting up the hybrid system, financing costs and monitoring the system’s performance with NPC.

PNOC president and CEO Oliver Butalid said the company would deploy the first few units to Masbate, hoping to scale up the project once it is proven economical and efficient.

The hybrid system was said to be aligned with PNOC’s efforts to introduce new energy technologies in marginal areas.

“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,” Butalid said.

NPC president Fernando Martin Roxas expressed optimism about the potential of the hybrid system to reduce reliance on fossil fuels as well as the subsidy component of the power rates.

“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.

According to PNOC, the project will highlight the importance of renewable energy in ensuring the country’s energy security and sustainability as well as addressing the challenges in the power sector.