Napocor can save up to P2.2B on hybridization, genset optimization

THE Department of Energy (DoE) said hybridization and optimization of power generation sets would save state-led National Power Corp. (Napocor) up to P2.25 billion yearly.
The expected savings was the among the major findings of a study conducted by experts of Access to Sustainable Energy Programme (ASEP) , an initiative funded by the European Union (EU).
ASEP is a joint undertaking of the EU and the DoE, through which the former set aside a grant of P3 billion to assist the Philippine government in meeting its rural electrification targets through renewable energy and energy efficiency.
In a statement, the DoE quoted Christoph Menke, strategic advisor of ASEP, as saying the study showed an estimated P1 per kilowatt-hour (kWh) cost reduction if Napocor adopts a solar hybridization of its large-scale power plants.
With the cost reduction, savings of at least P500 million could be realized, he said.
A hybrid mini-grid combines at least two different kinds of technologies for power generation. It then distributes the electricity to consumers through an independent grid. The mini-grid is supplied by a mix of renewable energy sources and a backup generation set powered by diesel fuel.
Mr. Menke, who presented his findings during Powertrends 2018, said another study shows that adopting hybridization in Napocor’s mini-grids and ensuring diesel generation sets are running at optimal levels would result in a cost reduction of around P4.5/kWh, which is almost P2.25 billion of annual savings.
He said the cost reduction would help bring down the electricity bills of consumers.
The study showed Napocor will realize savings if the renewable energy share in power generation is at least 23% of the energy mix, Mr. Menke said. Hybridization will result in better reliability and improved service hours of power plants.
“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.
The study also found that the hybridization of the fuel source of power plants would result in the reduction of DoE’s universal charge on missionary electrification subsidies and attract the private sector to invest in hybridized power generation. — V.V.Saulon