AHK Philippines H2 2.0

The state-owned National Power Corporation (NPC) operates 276 mostly diesel-powered electricity generating stations (Small Power Utility Group - SPUG), each with a capacity of a few 100 kilowatts. These power generators are located in off-grid areas and offer electricity at a subsidized price. The subsidy is funded by a general base charge that electricity customers pay monthly through their electricity bill. Transportation costs for diesel in the island nation are already enormous and will continue to grow due to steadily increasing commodity prices.The government has introduced the Renewable Portfolio Standards (RPS), a policy which is expected to bring about an expansion of renewable energy.

High diesel prices and the RPS represent a promising starting point for either hybridizing diesel generators for power generation or even replacing them with green hydrogen applications. A cost-benefit analysis that considers economic as well as environmental aspects of off-grid power generation based on hydrogen technology is a key basis for decision-makers. The NPC is open to cooperation.

AHK Philippines conducted a feasibility study with the help of a research institute, in which application scenarios with green hydrogen and fuel cells were carried out on two case studies: a hybridized plant and a conventional, purely diesel-powered plant operated by NPC-SPUG. In addition, a corresponding analysis was carried out at a private generator, which is also off-grid, in order to compare the public and private sectors and to be able to draw conclusions on possible differences. The aim was to present an exemplary optimal configuration of systems and to compare both performance and economic efficiency.

The results can serve as a basis for further steps and be transferable to other SPUG generators and privatized generators in off-grid areas. German companies will thus be informed about the market conditions and potentials of application scenarios with green hydrogen and fuel cells in the Philippines.