NAPOCOR: 77 Years of Powering the Archipelago

The National Power Corporation (Napocor) turns 77 years in the service of

the Filipino people today. Since its creation in 1936, Napocor constructed
various power generation facilities all over the country, consisting of hydro,
geothermal, coal and oil-based power plants, including the Bataan Nuclear
Power Plant (BNPP). It also constructed the transmission grid highway
interconnecting main islands nationwide.
Power generation used to be a monopoly of Napocor until the government
opened-up the sector to private investors in 1987. Since then, a number of
Independent Power Producers (IPPs) generated and sold electricity to
Napocor and other customers. In 1988, Napocor took over the generation
facilities of electric cooperatives in the remote islands to address the high
cost of electricity.
With the passage of the Electric Power Industry Reform Act of 2001 (EPIRA),
the landscape of the power industry began to change with the introduction of
two major reforms: the restructuring of the electricity industry and the
privatization of Napocor.
Pursuant to EPIRA, the National Transmission Corporation (TransCo) was
created to assume Napocors transmission function, while the Power Sector
Assets and Liabilities Management Corporation (PSALM) was created to take
on the ownership of Napocors assets and liabilities and manage the
privatization of Napocor assets, except for the assets of the Small Power
Utilities Group (SPUG). On the other hand, Napocor was mandated to
perform missionary electrification and be responsible for providing power
generation and associated delivery systems in areas that are not connected
to the main grids and to manage an environmental charge intended solely
for the rehabilitation, protection and management of watersheds and dams
nationwide. Napocor shall likewise operate and maintain the undisposed
power plants in the main grids including the Agus and Pulangi hydropower
complexes in Mindanao pending their privatization.
In 2004, the Department of Energy (DOE) initiated a privatization program
for SPUG areas to pave the way for the inflow of private capital in missionary
areas. It allowed the transfer of SPUGs generation function to the private
sector through a competitive selection process.
To date, Napocor provides power from a total installed capacity of 205 MW
sourced from 298 power plants spread out in 207 municipalities and 36
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provinces. With an existing customer base of 40 electric cooperatives and 9

LGUs, electricity is distributed to 770, 862 households nationwide. It
accounts for about 60% of the energy sales in the missionary areas, with the
rest coming from fourteen (14) New Power Providers (NPPs). Together with
the DOE and National Electrification Administration (NEA), Napocor
encourages private sector participation as the primary means of ensuring
power sufficiency and reliability in the farthest communities and the islands
of the country.
For 2014-2016, Napocor intends to put up a total of 91.087 MW capacity
additions in missionary areas estimated at Php 1.337 Billion. Further, it plans
to put up a total of 526.55 circuit-kilometers of transmission lines estimated
at Php2.896 Billion and 60 MVA substations at Php882 Million. Furthermore, it
plans to put up solar hybrid systems in areas having less than 24 hourservice and those with difficult or expensive fuel delivery cost.
Napocor continues to be responsible for the management and rehabilitation
of 17 dams and 11 watersheds covering around 500,000 hectares of forest
areas to ensure dam safety and protection of communities downstream, and
to provide sustainable water supply for power generation.
With its wealth of experience and technical expertise in the power industry,
Napocor remains an important pillar in realizing inclusive growth and
progress in off-grid areas and islands of the archipelago. To quote its first
lady president, Ma. Gladys Cruz-Sta. Rita, Napocor is challenged to intensify
the national agenda of total electrification of even the farthest communities
and of evolving a new model of corporate governance.
Our congratulations to the National Power Corporation in its 77 th anniversary
celebration! Mabuhay!