Napocor needs P17.136B to run power systems in off-grid areas

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SUNDAY, 22 JULY 2012 20:28 PAUL ANTHONY A. ISLA / REPORTER

GOVERNMENT-RUN National Power Corp. (Napocor) will need to raise P17.136 billion next year to run 534 generating units in 221 off-grid areas in the country.

Napocor President Froilan Tampinco said the 534 generating units produce 278.398 megawatts (MW) of electricity.

“Next year, we need that P17.136 billion to provide electricity in off-grid areas and to cover the expenses for power generation, transmission activities, including fuel, subsidies, operation and maintenance, some capital investment and personal services,” Tampinco said.

This year alone, Congress allotted Napocor a budget of around P15 billion for its Small Power Utilities Group (SPUG).

Tampinco said the state firm is set to spend P79.4 million to put up 4.425 MW in generating capacity to meet this year’s forecasted demand growth.

Napocor is also set to spend P295.55 million worth of transmission projects for Palawan, Mindoro and Catanduanes.

Napocor-SPUG operates 277 land-based diesel power plants, one hydroelectric plant, one hybrid wind-turbine farm and 11 barge-mounted mobile power plants that provide electricity to 221 island grids including eight isolated grids.

Tampinco said Napocor is pursuing moves that will reduce the cost of fuel of its power facilities.

“We have received proposals to make our diesel, and bunker-fired power plants more efficient. There are new technologies, which is something that will allow us to save on fuel expenses,” he said.

Napocor shoulders fuel expenses 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.

Napocor-SPUG has 51 customers consisting of 44 electric cooperatives and seven local government units.

The Energy Regulatory Commission last year allowed Napocor to recover P4.1 billion in its foreign exchange, and fuel and purchased power expenses for its missionary electrification functions.     source