Napocor wants clean energy usage in SPUG off-grid plants

State-owned National Power Corp. (Napocor) is teaming up with APTI Renewable Energy Corp. for the development of sustainable renewable energy using biofuel and biomass hybrid power in the off-grid areas of the country.

Napocor has signed a memorandum of understanding (MOU) with APTI REC in line with its ongoing efforts to explore innovative ways to accelerate its renewable energy and sustainability programs following recent funding challenges resulting from surging prices of fuel in the world market.

Napocor president and CEO Fernando Martin Roxas said the partnership is part of the corporation’s move to gradually minimize the dependence of its operations on fossil fuels.

“The MOU will allow us to access APTI REC’s technology on the use of biofuel or palm oil as an alternative fuel,” Roxas said.

“Together, we shall also collaborate to build a prototype bioenergy renewable energy power plant that uses palm oil and develop an integrated logistical and technical system for the production of biofuel and biomass,” he said.

At present, the country’s off-grid islands are powered mostly by diesel plants through the Napocor Small Power Utilities Group (SPUG).

Napocor operates a total of 281 SPUG power plants nationwide.

Roxas said there is a potential for the application of APTI’s technology in SPUG areas since most of these can be converted into palm oil plantations.

“Apart from high fuel prices, off-grid areas also suffer from inclement weather situations that sometimes hinder the delivery of fuel which in turn affects their power supplies,” Roxas said.

“If we can develop a model of this technology on various SPUG areas, we can save costs on fuel and hauling,” he said.

Roxas said the success of the partnership and the programs that would stem from it would eventually help Napocor achieve more affordable and cleaner energy, while providing additional livelihood opportunities in the off-grid areas.

APTI REC is a subsidiary of Asian Pyrochem Technologies Inc., an authorized export and import channel of the governments of Indonesia and the Philippines under a government-to-government energy program through PT PP Persero TBK and Philippine National Oil Co.

“We are happy to share our knowledge and experiences and to have found an ally in championing renewable energy in Napocor. This partnership will not only pursue energy development but will also help alleviate poverty in the countryside particularly in Small Power Utilities Group areas,” APTI REC president and CEO Harley Luis Leaño said.

Napocor is working on its long-term sustainability plan to mitigate the impact of high fuel prices on its operations.

Part of the plan is the accelerated hybridization of 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.

Napocor, as mandated by the Electric Power Industry Reform Act of 2001, is tasked to perform missionary electrification in the farthest communities and islands not connected to the main grid.

It is in this capacity that the corporation operates 281 SPUG plants in 189 municipalities across 35 provinces in the country.