PNOC buys P25-million solar panels from Shell Solar Philippines

MANILA, Philippines - State-run Philippine National Oil Co. (PNOC) has entered the second phase of its solar project by buying the remaining P25 million photovoltaic inventory of Shell Solar Philippines in a bid to provide electricity to far-flung areas not covered by electric cooperatives and distribution utilities. The company has completed the first phase of its Solar Homes Systems (SHS) project, having installed 15,100 solar home systems in off-grid villages. "PNOC is committed to harnessing renewable energy for the country. We see a huge market for solar home systems and we intend to meet the electricity needs of our fellow Filipinos, prioritizing those who are not connected to the grid," PNOC President Antonio M. Cailao said in a statement Thursday. PNOC signed the deal with Shell Solar on Monday. Under the second phase, PNOC commits to install around 40,000 solar units in the next five years, which will contribute P1.3 billion to PNOC’s gross revenues. To hit the target, however, the company will have to obtain more photovoltaic cells from other companies, PNOC said. "This second phase of our project is not time-bound like the first phase. This will continue for several years because PNOC is committed to renewable energy heavily," Mr. Cailao said. He added that they were targeting at least 5% of 1.68 million households. PNOC said the country still has 3.8 million households without electricity. PNOC will initially target far-flung villages in Sulu before the year-ends. To promote solar power, the company will expand its distribution of solar power products to industrial, institutional and urban residential sectors. Aside from powering off-grid villages, the company will also introduce high-end products to these new markets. Besides solar panels, PNOC will sell solar lanterns, solar streetlights, solar accessories, water pumping systems, telecommunication, computer and multimedia packages, and special applications based on client requirements. PNOC said it would be the government’s vehicle in promoting and developing renewable energy sources such as solar, wind, hydropower, geo-thermal, biomass, ocean and fuel cell technology. The project is part of PNOC’s response to the recently ratified Renewable Energy bill. The bill, awaiting the signature of the President, promotes environment-friendly renewable energy technologies. PNOC’s solar project started in 2002 with a 5.59-million euro grant from the government of The Netherlands. — Ava Kashima K. Austria, BusinessWorld