PNOC’s goal of becoming a Retail Electricity Supplier (RES) is set to play a significant part in the Philippines’ energy landscape. This move aligns with the Electric Power Industry Reform Act (EPIRA) – specifically the Retail Competition and Open Access (RCOA) framework – which aims to provide more energy choices for consumers. PNOC plans to achieve this by aggregating government entities’ electricity demands and connecting them directly to generating companies. This will ensure cheaper and more reliable electricity supply for government agencies.
PNOC’s short-term plan includes the following steps: 1) obtaining an RES license, 2) signing a Memorandum of Understanding (MOU) with a government agency for an initial 10 MW electricity demand aggregation, and 3) piloting advanced metering systems.
In the medium term, PNOC intends to establish itself as an off-taker for new power projects. PNOC’s overall vision is to facilitate the entry of new-generation players into the market through effective demand aggregation, allowing government entities to become contestable electricity consumers. This enables them to source more renewable energy and ultimately benefit from lower electricity costs in the long run.