Monday, July 23, 2012

Napocor eyes P17-b fund to operate off-grid plants

Manila Standard Today
By Alena Mae S. Flores | Posted on July 23, 2012 | 12:01am 

Cash-strapped National Power Corp. needs P17.14 billion next year to finance the operation of 534 generating units with a combined capacity of 278.398 megawatts in 221 off-grid areas around the country.
“For 2013, Napocor’s requirements to pursue electrification will require P17.136 billion, which covers power generation, transmission activities, including fuel, subsidies, [operations and maintenance], some capital investment and personal services,” Napocor president Froilan Tampinco said.
Napocor requires funding of around P15 billion for its Small Power Utilities Group operations this year. Congress approves Napocor’s SPUG operations annually.
Napocor is set to upgrade power plants with a combined capacity of 4.425 MW at cost of P79.4 million to meet demand and spend some P295.55 million for transmission projects in Palawan, Mindoro and Catanduanes.
The SPUG operation is composed of 277 land-based diesel power plants, one hydroelectric station, one hybrid wind turbine farm and 11 mobile barges serving 221 island grids, including eight isolated ones, serving 3,947 barangays in 216 municipalities.
Napocor’s SPUG has 51 customers consisting of 44 electric cooperatives and seven local government units.
Tampinco said Napocor would pursue plans to reduce the cost of fuel.
“We have received proposals for making diesel [and] bunker to make them more efficient. There are new technologies. This is something that will allow us to save on fuel expenses,” he said.
Napocor has been subsidizing the cost of fuel in the off-grid areas as part of its mandate under the Electric Power Reform Act of 2001.
“We cannot incur losses all the time. We want to spur the necessary economic activity that will allow the people to pay the cost of electricity,” he said.    source

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