Enfinity targets off-grid solar hybrid plants of up to 10 MW

Business World Online
Posted on July 28, 2015 07:56:00 PM

BELGIUM’S Enfinity Group is looking at various solar prospects in Philippine off-grid areas, targeting projects with capacity of up to 10 megawatts (MW) each.

A solar rooftop project at the Asian Development Bank headquarters in Manila -- BW File Photo
The solar energy company said in a statement that solar-hybrid projects are a cost-competitive solution for areas covered by National Power Corp.’s (NPC) Small Power Utilities Group (SPUG)

“NPC has 280 SPUG power plants,” said William Ruccius, business development director of Enfinity Asia Pacific Holdings Ltd., noting that size of these plants ranges from 40 kilowatts to about 10 MW.

“These off-grid areas are currently being serviced with their electricity needs via diesel-fired power generating facilities that tend to be more expensive,” said Mr. Ruccius.

Mr. Ruccius said generation rates in off-grid areas range from P14 to P45 per kilowatt-hour and power is only available for about eight to 16 hours a day.

Cheaper alternatives -- like solar hybrid projects -- can help bring down the cost of power in these areas, which are subsidized.

“With hybrid solar and battery storage system as back-up technology, Enfinity noted that these areas could opt for a less costly solution while also lessening their carbon footprints,” Enfinity said.

This is expected to be backed by the anticipated drop in costs of photovoltaic (PV) solar panels, according to Enfinity Energy Greece General Manager Platon Baltas.

At the same time, utilizing a battery storage component for the solar projects could extend electricity service in the off-grid areas.

“Hybrids can provide 24/7 service at affordable cost for houses connected to ‘bad’ electricity grids,” according to Mr. Baltas.

He added that solar hybrid systems generally comprise of a PV array, battery and hybrid inverter.

Mr. Ruccius, for his part, added that the private sector can invest as new power provider or qualified third party (QTP) in the off-grid areas.

He noted, however, that commercial and market risk issues have to be addressed via regulatory and policy frameworks to make hybrid solutions in the country viable in the SPUG areas.

Among the issues, according to Mr. Ruccius, is the credit-worthiness of electric cooperatives, including those that have been catering to the service needs of the SPUG areas.

“The problem here is that many electric cooperatives are not credit worthy and it is difficult to get paid,” he said.

“The QTP provides the generation and also takes over the distribution function, so it collects the money and pays itself,” he added.

Overall, Mr. Baltas said financing will remain the biggest challenge if a framework is not in place.

Last May, Enfinity officials said the company will invest $180 million to develop four solar power projects in the Philippines with a combined capacity of over 100 MW by the end of the year. -- Claire-Ann Marie C. Feliciano source