Sunday, May 29, 2011

Napocor calls on gov’t agency to fund hydro plant upgrade

Business World Online
Posted on May 29, 2011 11:13:10 PM

NATIONAL POWER Corp. (Napocor) has called on a state agency to release at least P139 million for the rehabilitation of the Agus hydroelectric power plant in Mindanao now that there is more room to conduct maintenance work without hurting power supplies in the region.

“The Agus rehab isn’t moving. We already have National Economic and Development Authority approval for the project so it’s a funding issue now,” Napocor President Froilan A. Tampinco said in an interview withBusinessWorld.

The funds will have to come from the Power Sector Assets and Liabilities Management Corp. (PSALM), the agency created to privatize plans and manage Napocor’s debts, under Republic Act 9136 or the Electric Power Industry Reform Act of 2001.

Mr. Tampinco added the rehabilitation can be done now that there is more leeway to shut down plants.

PSALM could not be reached for comment.

Napocor earlier said it wants to begin rehabilitation of Agus and the dredging of the Pulangi River this year to further increase capacity of the power plants and provide more energy to Mindanao.

Both hydroelectric power plants are currently providing baseload power to Mindanao. About 53% of the region’s power is sourced from hydroelectric power especially from Agus hydroelectric power plant and the Pulangi hydropower plant.

Last year, Mindanao experienced rotating brownouts throughout summer due to low water levels brought about by El Niño, or drought conditions. National Grid Corp. of the Philippines had to use more expensive ancillary power from Power Barges 117 and 118 to augment the power shortage.

Rehabilitation could initially add five to 10 megawatts to the 500-megawatt Agus power plant’s capacity.

Napocor is also planning the rehabilitation of the Pulangi hydroelectric power plant but Mr. Tampinco said “Pulangi is still okay.”

The Pulangi hydropower plant in Bukidnon generates 255 megawatts and began operations in 1985. Currently, the power plants are operating at a derated capacity of around 200 to 300 megawatts.

Agus and Pulangi are both operated by Napocor and are up for privatization.

However, there is a pending resolution from the Congress deferring the privatization of both plants.

The region is currently supported by 998 megawatts of installed capacity of hydroelectric power, 210 megawatts of coal energy, 98 megawatts of geothermal energy and about 485 megawatts of fuel-generated energy. --
Emilia Narni J. David

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