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NFA to trim power cost from new solar project partnership with PNOC

Author: DA Press Office | 10 October 2024

The National Food Authority on Thursday has signed a Memorandum of Agreement  with state-owned Philippine National Oil Co. to implement a rooftop solar photovoltaic system at its headquarters in Quezon City. This initiative aims to reduce electricity costs and improve overall energy management for the agency responsible for ensuring the country’s rice supply.

“NFA is going green. We will not only save on our power cost from this solar rooftop project, we are also contributing to the reduction of carbon emission and in safeguarding the environment,” NFA administrator Larry Lacson said. He added that the solar project that agency’s  headquarters will be eventually replicated in other NFA offices and warehouses across the country.

Under the agreement, NFA will lease a 100 kiloWatt-peak solar PV system, which is projected to substantially lower its electricity expenses. The monthly billing will be calculated based on the net energy output of the solar system, set at a rate 10 percent lower than prevailing utility prices. This cost-saving measure is expected to provide NFA with significant financial relief, allowing it to allocate more resources toward its core mandate of maintaining sufficient rice buffer stocks.

For the entire NFA network, the total solar capacity will be 5 MWp.

The project aligns with PNOC’s commitment to promoting renewable energy and energy self-sufficiency in government operations. By leveraging solar power, NFA not only reduces its carbon footprint but also contributes to the national goal of increasing renewable energy utilization. The collaboration represents a strategic investment in sustainability, which is crucial in the face of rising energy costs.

The implementation of the solar PV system comes at a time when government agencies are under increasing pressure to adopt more efficient practices. NFA’s participation in this project sets a precedent for other government entities, demonstrating the viability and benefits of transitioning to renewable energy sources. As NFA moves toward more sustainable operations, it strengthens its role as a leader in energy efficiency within the public sector.

In addition to cost savings, the project is expected to enhance the reliability of NFA’s energy supply. By generating its own electricity, the agency can mitigate the risks associated with fluctuating energy prices and supply disruptions. This reliability is particularly important for NFA, as its operations directly impact the country’s food security.

The MOA stipulates that ownership of the solar PV system will transfer to NFA after fifteen years at no additional cost, further enhancing the long-term benefits of this investment. This lease-to-own arrangement not only reduces upfront costs but also provides NFA with a sustainable energy solution for years to come.

NFA will also benefit from the expertise and resources of PNOC throughout the installation and operational phases of the project. PNOC is responsible for ensuring that the solar PV system complies with safety standards and relevant regulations, allowing NFA to focus on its core activities without diverting significant resources toward energy management.

Overall, the partnership between NFA and PNOC marks a crucial step in modernizing the agency’s operations and promoting sustainability. With this solar project, NFA is poised to enhance its energy efficiency, reduce operational costs, and solidify its commitment to environmental responsibility, all while ensuring that the country’s rice supply remains secure and accessible to the Filipino people. ### (DA-National Food Authority)

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