TAGUIG CITY, Metro Manila—PNOC and the National Power Corporation (NPC) held a joint workshop on August 1, 2025, to identify sites for the hybridization of diesel power plants in off-grid areas across the country. Targeted for implementation in 2026, the project aims to integrate solar photovoltaic (PV) and battery energy storage systems (BESS) into existing diesel power plants to improve energy access, reduce fuel dependence, and lower operating costs.
This initiative supports NPC’s Accelerated Hybridization Program (AHP), a nationwide strategy that aims to put up renewable energy generation plants into off-grid areas to supplement, augment, or replace existing capacities of the Small Power Utilities Group (SPUG) diesel power plants.
PNOC presented its 2025 project pipeline, which includes four initial sites in Homonhon and Limasawa islands in the Visayas. Under the project’s business model, PNOC will serve as the lead implementor, covering pre-development, installation, and operation and maintenance. On the other hand, NPC will act as the off-taker under a Memorandum of Agreement, procuring power at the Subsidized Approved Generation Rate for a cooperation period of 20 years.
To date, PNOC has completed preliminary site visits and engaged a consultant to perform detailed feasibility studies in support of securing Solar Energy Operating Contracts. The company is currently preparing to present the project to its Board for approval, including a recommendation to adopt an agency-to-agency procurement approach for the power supply component. PNOC is targeting the award of Engineering, Procurement, Construction, and Commissioning (EPCC) contracts for the pilot sites by the end of 2025.
The workshop also covered legal, technical, and coordination issues. Both PNOC and NPC shared recommendations to address potential challenges and agreed to work closely with the Department of Energy to ensure regulatory alignment and a smoother rollout of the project.
A total of 46 sites were shortlisted for potential hybridization in 2026, subject to final technical validation and coordination with NPC. These sites were selected using a prioritization matrix developed by PNOC, based on criteria such as technical viability, logistics constraints, plant condition, energy demand and growth projections, land availability, and local government support.
PNOC and NPC also agreed to collaborate in advocating for policy and procurement reforms to accelerate renewable energy development in off-grid areas. The agencies committed to implementing a technically sound, legally compliant, and financially viable hybridization program that supports the country’s energy goals.