PPP Center, NPC conduct market sounding for Accelerated Hybridization Project

With assistance from the Public-Private Partnership (PPP) Center, the National Power Corporation (NPC) conducted its market sounding activity today for its Accelerated Hybridization Project (AHP), which it intends to undertake through private sector participation. The activity was conducted today at the Fiesta Hall of the National Power Corporation Building in Quezon City.

The AHP, which will utilize renewable energy sources and technology, will allow the private sector to enter into off-grid areas and put up renewable energy generation plants or facilities to supplement, augment, or replace the existing capacities of the Small Power Utilities Group (SPUG) diesel power plants.

Once operational, the AHP is intended to reduce Universal Charge for Missionary Electrification (UCME) subsidies; reduce the use of diesel fuel and its cost; increase the capacities to be installed in the off-grid areas to meet peak and increasing loads of Electric Cooperatives/Distribution Utilities from renewable resources; and provide the mechanism by which the Electric Cooperatives and Distribution Utilities can meet the requirements of the Renewable Portfolio Standards (RPS) for off-grid areas as mandated by the Department of Energy.

PPP Center Executive Director Ma. Cynthia C. Hernandez lauded NPC’s efforts “in moving projects in renewable energy to diversify energy supplies and also to achieving Goal 7 in the Sustainable Development Goals: Ensuring access to affordable, reliable, sustainable, and modern energy for all.”

The activity was conducted to help NPC solicit initial feedback from the market on the feasibility of the proposed PPP project, particularly on the most appropriate legal framework to utilize, whether through traditional procurement under EPIRA or through PPP using the Revised 2022 BOT Law and its IRR.