State-run National Power Corp. plans to borrow an additional P10 billion to pay for the fuel needs of the Small Power Utilities Group areas.
NPC president and chief executive Fernando Martin Roxas said the agency would no longer pursue fuel rationing in the off-grid areas after the agency borrowed P5 billion from Landbank of the Philippines.
“We’ve been able to borrow P5 billion. We will add an additional P10 billion from Landbank…to buy all of the fuel that we will need,” Roxas said.
He said NPC sought the Monetary Board’s approval for the new borrowing, and they began to apply for the sovereign guarantee.
“We’re hoping to get it by August or September this year. Hopefully August this year,” Roxas said.
Roxas earlier said NPC won’t implement power curtailment in SPUG areas despite budget constraints for fuel.
“Instead, we are diligently pursuing measures to source additional funds to ensure the continuous supply of electricity in the 281 SPUG plants we operate and subsidy payments to all new power players/qualified third parties,” he said.
Meanwhile, NPC targets to increase the share of renewable energy in the power supply of its off-grid areas to 25 percent by 2026 from a 2 two percent to date.
Roxas said NPC was looking at various technologies, including solar.
“Many kinds of technologies, but we will start with the easiest, which is solar, then we will work our way to other technologies. It cannot all be solar,” Roxas said.
Roxas is pushing for hybrid energy projects to power the missionary areas to reduce their dependence on diesel, which is more expensive.
A hybrid mini-grid combines at least two different kinds of technologies for power generation and a backup diesel genset. It distributes electricity to several consumers through an independent grid.
NPC is gradually minimizing the use of diesel generating sets and fast-tracking the renewable energy program in SPUG power plants after Energy Secretary Raphael Lotilla ordered it to stop procuring new diesel gensets to lessen the corporation’s dependence on fossil fuels.
“My ultimate goal is to convert all SPUG areas to 100-percent RE operations. What is good for the environment is likewise good for Napocor,” Roxas said.