Napocor halts procurement of diesel-powered gensets

MANILA, Philippines — State-owned National Power Corp. (Napocor) will cease from acquiring diesel generating sets in line with its push for sustainability through renewable energy.

Napocor president and CEO Fernando Martin Roxas said the decision came following the directive of Energy Secretary Raphael Lotilla to stop procuring new diesel gensets in order to lessen the corporation’s dependence on fossil fuels.

The move will also accelerate Napocor’s bid to fast-track its renewable energy program in its Small Power Utilities Group (SPUG) power plants and gradually minimize the use of diesel gensets.

“We intend to push for hybridization for existing SPUG and to fully utilize renewable energy with energy storage systems for new areas. This will minimize the losses incurred from rising fuel costs and will eventually make our operations more sustainable,” Roxas said.

Napocor said it would also use and deploy more solar home systems (SHS) and install wind resource assessment in probable areas for wind farms.

In 2022, Napocor has awarded contracts for the installation of around 2,600 units of SHS in Maconacon and Divilacan in Isabela, and in various areas in Masbate, Bohol, Dinagat, Sulu and Basilan.

SHS units include solar panels, batteries, LED lamps, radio, and torch lamps with 5V charging ports and are being distributed to unserved households in SPUG areas.

In pushing for sustainability through renewable energy, Napocor said it can also lower its generation cost over time and minimize its carbon emission.

“My ultimate goal is to convert all SPUG areas to 100 percent renewable energy operations” Roxas said.

“What is good for the environment is likewise good for Napocor,” he said.

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.

It has been 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.