Government starts P2.6-billion Agus plant upgrade

By Neil Jerome C. Morales (The Philippine Star) Updated March 26, 2012 12:00 AM


MANILA, Philippines - The government will start a P2.6-billion upgrade of the Agus 6 hydroelectric plant in Lanao de Norte this June, state-run National Power Corp. said.


The project will increase the generation capacity of the power plant and is a contingency measure given the power crisis in Mindanao.


“The power station will be up-rated to 69-megawatt (MW) capacity using the same configuration. This is made possible due to the use of modern technology in the design of hydropower plant especially in the turbine runner,” Napocor said.


“Units 1 and 2 are presently requiring higher maintenance costs and are operating inefficiently. There is an imminent danger that these units will eventually cease operations any time now,” Napocor said.


To date, Units 1 and 2, which were commissioned in 1953, are generating only 20 MW each from its 25-MW capacity.


Napocor said the 30-month long upgrade that will start in June will cost P2.6 billion to be funded by state-run Power Sector Assets and Liabilities Management Corp., which is in charge of privatizing government power assets as well as managing Napocor’s power plants and debt.


The replacement of turbine runners, main generators and power transformers will extend the units’ operating life for a minimum of 30 years.


“The project is part of the Mindanao contingency measures to secure sufficient supply of power in the grip,” Napocor said.


The Mindanao grid, which needs an average of 1,300 MW, lacks an average of 50 MW to 300 MW resulting in two to four hours of rotating brownouts since January, data from the National Grid Corp. of the Philippines showed.


Aside from the upgrade, other contingency measures for Mindanao are the dredging of the Pulangi 4 hydroelectric power reservoir, transfer of two power barges and operation of the Iligan diesel plant.


Last September, the National Economic and Development Authority approved the rehabilitation plan for Agus 6.


The project was subject to two failed competitive biddings in 2008. The newest of the Agus power plant is Agus 1, which went online in 1992.