UK oil search firm to install solar home system in Ifugao

State-owned Philippine National Oil Co. (PNOC) has entered into an agreement with a UK-based oil exploration firm for the installation of solar home systems in Ifugao province.

PNOC said Middle East Petroleum Services (MEPS) has agreed to provide the funding to electrify households in selected barangays in the province.

MEPS is an oil exploration company and is also diversifying into renewable energy development. The project is part of MEPS’ corporate social responsibility program.

According to PNOC, the project will be part of its PNOC Solar Homes Project which is now on its fourth year.

There are now P210.6 million worth of solar systems installed under the project. As of August 2006, the project has benefited 10,551 households in various regions in the country.

PNOC said there are about 4,500 units left to install for the project to be completed, which is targeted by the middle of 2007. It added it is confident that with the entry and participation of MEPS in this project will enable it to meet this target.

The project was made possible through a 5.591-million euro grant from the government of Netherlands and partly subsidized by PNOC.

"Because of this support, the solar home systems are made much more affordable," PNOC said.

The state-run company is optimistic of the benefits and long-term positive impact of the project, citing the need to develop other energy resources so that households that are not connected to the main power grid can enjoy the benefits of electricity.

In 2004, the PNOC solar project was a recipient of the highest award for sustainability in the internationally-renowned Energy Globe Awards.

Through the same solar project, the government also aims to install some 15,000 solar home systems as source of electricity in Regions 1 to 7 as well as in the Cordillera Administrative Region.

About 40 agrarian reform communities in Mindanao are also expected to enjoy electricity through the Solar Power Technology Support (SPOTS) project of the Department of Agrarian Reform and the Department of Energy (DOE). Phase 1 of the project involves a $25.188-million loan from a Spanish mix credit facility and a P450-million government counterpart.