Going hybrid could save NPC P2.25B/year

The use of hybrid power generation technologies, along with proper maintenance of generators, could enable state-run National Power Corp. to save P2.25 billion yearly, according to the Department of Energy (DOE).

The DOE cited findings of a study conducted by experts who are with the European Union-funded Access to Sustainable Energy Programme (ASEP), a joint undertaking between the European Union and the DOE.

Through ASEP, the European Union has allocated a grant of over P3 billion to help the Philippines meet its rural electrification targets through renewable energy and energy efficiency.

“Our study shows that there will be an estimated P1 per kilowatt-hour cost reduction if Napocor adopts a solar hybridization of its large-scale power plants, which will result in at least P500 million savings [yearly],” ASEP strategic advisor Christoph Menke said in a statement.

Menke also said the adoption of hybridization in Napocor’s mini-grids, as well as ensuring diesel generator sets are running at optimal levels, will result in a cost reduction of around P4.5 per kwh, or about P2.25 billion yearly.

The DOE explains that a hybrid mini-grid combines at least two different kinds of technologies for power generation and distributes the electricity to several consumers through an independent grid.

The mini-grid is supplied by a mix of renewable energy sources and a backup generator set that runs on diesel.

Menke said the huge savings would be realized if the renewable energy share in power generation were at least 23 percent of the energy mix.

“A hybrid mini-grid will increase the resilience and efficiency of our power generation assets, reduce fuel consumptions and dependence on diesel, which in turn reduce emissions that are harmful to the environment,” he said.