AboitizPower shuts down 46 MW of Cebu facilities

Aboitiz Power Corp., the holding company for all energy-related investments of the Aboitiz Group, is shutting down close to 46 megawatts of diesel-fired facilities in Cebu due to challenges brought by operating advanced diesel engines.

In a stock exchange report on Thursday, the company said it secured the approval of the Department of Energy (DoE) for the decommissioning of its 44.640-MW Naga Oil-Fired Power Plant and 0.440-MW Black Start Diesel Engine Generating Unit. These facilities are part of the 153.1-MW Naga Power Plant Complex in Barangay Colon, Naga City, Cebu.

Advanced age of diesel engines

AboitizPower explained that the decision to decommission the plants, which takes effect on 31 March, was made due to the technical and operational challenges caused by the advanced age of the diesel engines.

“The decommissioning was pursued in view of the technical and operational issues of the plant caused mainly by the advanced age of the diesel engines,” the company stated.

As part of the decommissioning process, notices will be sent to the Independent Electricity Market Operator of the Philippines Inc., the National Grid Corporation of the Philippines, the Energy Regulatory Commission, and other relevant bodies, in compliance with the DoE’s Implementing Guidelines on the Decommissioning and Mothballing of a Generating Plant.

TPVI, a wholly-owned subsidiary of AboitizPower through Therma Power Inc., acquired the Naga Power Plant Complex from Salcon Power Corp. on 16 July 2018. Since then, TPVI has undertaken rehabilitation, operation, and maintenance efforts to sustain the facility.

Temporary or permanent

As of press time, AboitizPower has not yet clarified whether the facility shutdown will be temporary or permanent, or if its decommissioning will pave the way for the construction of new facilities in the province.