MANILA, Philippines — Local renewable energy developer Sabang Renewable Energy Corp. (SREC) is putting up the country’s first hybrid-powered micro-grid in Sabang, Palawan to reduce diesel consumption and generate savings on rural electrification.
SREC – composed of Singapore-based WEnergy Global, Gigawatt Power Inc. and Vivant Corp. – broke ground on the hybrid micro grid project consisting of 1.4-megawatt peak (MWp) solar PV with a 2.3-megawatt hour (MWh) battery storage system and 1.2-MW diesel generators to power its 14-circuit kilometer distribution facility.
The company claimed it is the first of its kind Energy Regulatory Commission (ERC) and Department of Energy (DOE) approved project in the country as well as in the ASEAN region.
The project is expected to be operational in 2019, to be operated under an ERC-approved qualified third party (QTP) agreement with the Palawan Electric Cooperative (Paleco).
As QTP, SREC is authorized to generate and distribute electricity in Bgy. Cabayugan, which has been waived from Paleco’s franchise area.
SREC president and CEO Walden Tantuico said the solar PV/battery system would enable the company to provide an average of 50 percent of clean energy to the grid.
About P298 million to P527 million in savings could be realized due to the project’s renewable energy component, the company said.
Compared with a full diesel-operated plant, the solar and batteries in the hybrid system reduces diesel consumption and makes the cost less dependent on volatilities in the price of oil.
The savings will enable the government to accelerate its rural electrification program while promoting renewable energy development.
SREC’s hybrid power generation technology will not only provide round the clock electricity, but also avoid about 25,700 metric-tons of CO2-equivalent emissions over a 20-year lifetime.
“SREC’s investment and operations will provide a catalyst to greater business and economic activity in the region. Beyond an increase in tourism investments and arrivals, the electricity infrastructure will spur the creation of more enterprises to improve the standard of living of Palaweños,” Puerto Princesa City mayor Lucilo Bayron said.
The Sabang project will also serve as a model for other clean energy projects in Palawan to protect the island’s ecosystem and sustainable development, SREC said.