In a move aimed at accelerating the shift to renewable energy in off-grid communities, the Philippine National Oil Company (PNOC) and the National Power Corporation (NPC) signed a Memorandum of Understanding (MOU) on May 5, 2025, to hybridize seven diesel power plants (DPPs) in the Visayas region.

The agreement, formalized by PNOC President and CEO Oliver Butalid and NPC President Fernando Martin Roxas, was signed during a two-day planning workshop organized by NPC’s Small Power Utilities Group (SPUG) in Lahug, Cebu.

Hybridization involves integrating existing diesel generators with renewable energy sources—such as solar or wind—and energy storage systems to enhance efficiency, reduce fuel dependency, and cut emissions. This initiative is expected to lower operational costs and improve energy sustainability in Geographically Isolated and Disadvantaged Areas (GIDAs).

The workshop brought together representatives from key government agencies, including the Department of Energy (DOE), to address the technical, logistical, and regulatory challenges of implementing hybrid systems in the targeted sites.

PNOC said the collaboration aligns with its broader mission to deliver affordable and sustainable power to underserved regions, particularly in the Visayas and Mindanao, which are heavily reliant on diesel-powered electricity.