Invest in clean energy, Napocor urges firms

By Amy R. Remo
Philippine Daily Inquirer

STATE-RUN NATIONAL POWER CORP. SEEKS investments in renewable energy for its island and off-grid operations, in a bid to reduce costly government subsidies to its Small Power Utilities Group operations.

SPUG, Napocor’s missionary electrification arm, currently provides power to remote islands and barangays not connected to the main grids, and the subsidy to these areas runs up to about P6 billion a year.

“The subsidy of government becomes less because we will now just have to provide the gap between the regulated rate of electricity and the actual generating cost of the private sector, as opposed to coming in there on our own and covering the entire cost. That is where the value of the partnership comes in,” said Napocor president Froilan A. Tampinco.

He cautioned, however, that relying on renewable energy alone could be expensive.

“The trick is to come up with hybrid systems. This is a combination of renewable and conventional energy,” Tampinco said.

Another incentive for investors, Tampinco noted, was the pending tourism bill, which aims to promote tourism in areas where SPUG operates.

“That [bill] is going to be another incentive for investors in terms of the improved economic activity of the people, the prospects for the market and better returns,” Tampinco said.

“I am very confident and bullish about how things are moving right now. Our concentrated efforts on these island and off-grid operations, the supportive legislative piece in the form of the New Renewable Energy Law and the coming Tourism Bill will allow us to have a positive impact on these communities that need priming up to improve their livelihood,” he added.