Aboitiz Power to transfer power barges to Mindanao this year

MANILA, Philippines - The Department of Energy (DOE) expects Aboitiz Power Corp. to start transferring several power barges to Mindanao late this year.

Additional output from the barges and a diesel-fired power plant will increase available supply in electricity-starved Mindanao, the Energy chief said.

DOE Secretary Jose Rene Almendras said the government is looking at sourcing an additional 120 megawatts (MW) from the power barges.

“They are in negotiations with certain people already...We brought the people to the table with each other,” Almendras said.

The signing of the supply contract will be finalized in the next few months, Almendras said.

“I hope that they will sign in the next months so the movement can happen,” he said.

Aboitiz Power’s subsidiary Therma Mobile, Inc. earlier said it is willing to transfer four units of barge-mounted floating power plants now moored at the Fishport Complex in Navotas City.

Almendras said refurbishing of the power barges was already completed.

The power barges, which produce more expensive electricity given the use of diesel, are movable and can be relocated anywhere with adequate mooring structures.

Almendras said the DOE is also hoping for the resumption of operations of the 100-MW Iligan diesel power plant.

The power plant also clearance from the Commission on Audit before it resumes operation.

Almendras said the two measures will increase available supply in Mindanao by 220 MW that might prevent outages during peak hours.

The Mindanao grid, which needs an average of 1,300 MW daily, lacked 50 MW to 300 MW, resulting in two to four hours of rotating brownouts early this year, data from the National Grid Corp. of the Philippines showed.

Meanwhile, Almendras said state-run Power Sector Assets and Liabilities Management Corp. (PSALM) is on schedule for the second round of bidding for four government-owned power barges.

“Hopefully there are more bidders. If not, we follow the government process of negotiation,” Almendras said.

In May, PSALM’s bidding of for Power Barge Nos. 101, 102, 103 and 104 – the firm’s first privatization effort this year – failed as only one of seven qualified bidders submitted an offer.

Under the bidding rules, winning firms should immediately transfer these power facilities in electricity-starved Mindanao and would have to stay there until 2014.