The use of green hydrogen and renewable energy can help lower power generation consumption in off-grid areas in the Philippines, according to a study by German non-profit research institution, Rainer Lemoine Research Institute (RLI), which was commissioned by the German-Philippine Chamber of Commerce and Industry (GPCCI).

The feasibility study was presented by RLI on Nov. 22 during a GPCCI conference in Pasig. It explored how green hydrogen and fuel cell technologies can replace diesel-powered systems and modernize off-grid power assets in the country. This was a focus of interests by German businesses in the country.

The study focused on three National Power Corp. (Napocor) sites including Northern Luzon, Southern Luzon, and Visayas, and provided critical insights into the viability and impact of green hydrogen technology in these regions. 

“Green Hydrogen is one part of the puzzle to achieve a cleaner supply of energy in the Philippines,” said Dr. Paul Bertheau of RLI.

“As a research institute, we are always glad to [collaborate] with important energy stakeholders in the country to help get rid of its reliance [on] fossil fuels,” he added.

In his presentation, Bertheau showed that the power generation costs of diesel supply are the most expensive for Northern Luzon, Southern Luzon, and Visayas with a range of P25 to P36 per kilowatt hour (PHP/kWh).

Meanwhile, a 100 percent renewable energy supply with green hydrogen can generate at similar cost or even lower costs than pure diesel systems with P24 to P26 per kilowatt hour, according to Bertheau, noting however that upfront investment is required.

In addition, the combination of renewable energy, green hydrogen, and a small diesel generator as a backup supply, with renewable energy shares of 55 to 70 percent, can significantly reduce power generation costs to P15 to P18 per kilowatt hour.

The study also showed that the integration of renewable energy and green hydrogen can reduce the Universal Charge – Missionary Electrification (UCME) cross-subsidy requirements and relieve the national funds.

Based on the study, the power supply in the country’s off-grid areas is “mainly based on diesel generators operated by National Power Corporation (NPC), Independent Power Producers (IPPs) or makeshift barangay grids.”

The report highlighted that diesel generators are well-known and flexible in operation, but their power costs are dependent on global oil prices which have been increasing in recent years.

It added that using diesel-powered generators also requires high maintenance and can lead to frequent technical problems.

These generators could also contribute to greenhouse gas emissions, local pollution, and poorly operated, insecure, short supply hours, among others.

To aid the concern and promote a greener energy supply, the study highlighted the potential of a hybrid energy system for remote islands using renewable energy, battery storage, and a hydrogen (H2) system.

The H2 system is composed of an electrolyzer to generate hydrogen from excess electricity; H2 storage to store green hydrogen for backup use; and a fuel cell to reconvert hydrogen to electricity which eventually powers appliances.

In June, Napocor and GPCCI announced their collaboration to embark on a feasibility study that aims to support the modernization of power-generating assets in off-grid areas by exploring the potential replacement of diesel-powered systems with green hydrogen and fuel cell technologies.

“Our primary focus is to contribute to the success story of the Philippines in achieving their renewable energy targets,” GPCCI President Stefan Schmitz said, emphasizing the importance of the dialogue in the development of green hydrogen technologies in the country.