Napocor mulls RE shift for small diesel plants

National Power Corp. (Napocor) is working on a long term sustainability plan to mitigate the impact of high fuel prices on its operations.

Napocor said part of the plan is the accelerated hybridization of Small Power Utilities Group (SPUG) power plants with renewable energy resources.

To expedite the deployment of renewable energy in its service areas, Napocor is looking to work with the private sector through public-private partnership arrangements.

At present, the country’s off-grid islands are powered mostly by diesel plants through the Napocor SPUG.

Napocor operates a total of 281 SPUG power plants nationwide.

Also part of the long term sustainability plan which it is working on are preparations for universal charge for missionary electrification (UCME) graduation through the interconnection of major island grids to the main grid, as well as UCME rationalization through customer classification in missionary areas.

Napocor, along with the private sector through the new power providers (NPPs) and qualified third parties (QTPs), is responsible for the power generation function in some 169 off-grid areas in the country.

Due to the increased cost of fuel, Napocor said that its approved and allocated funds for its fuel expenses and subsidies for NPPs and QTPs for 2023 are insufficient to cover the requirements for the entire year.

With the help of the Department of Energy and other concerned government agencies, Napocor said it is pursuing measures to bridge the funding gap and ensure the uninterrupted delivery of power services in far-flung islands and villages.

“Napocor assures its customers that it is undertaking remedies to ensure continuous delivery of power services to the off-grid areas in the country,” it said.

Aside from operating SPUG power plants nationwide, Napocor also develops and maintains the transmission systems of Palawan, Oriental and Occidental Mindoro, Marinduque, Masbate, and Catanduanes.