Aboitiz Power Corporation announced the planned decommissioning of its 44.64-megawatt (MW) Naga Oil-Fired Power Plant (OFPP) and its 0.44-MW Black Start Diesel Engine Generating Unit (BSDEGU) by March 31, 2025.
The decision came after the Department of Energy’s (DOE) issuance of a Letter of Confirmation approving the shutdown, citing technical and operational challenges due to the aging 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,” said the firm in its regulatory filing.
Therma Power Visayas, Inc. (TPVI), a subsidiary of Aboitiz Power, will formally notify key energy agencies, including the Independent Electricity Market Operator of the Philippines (IEMOP), the National Grid Corporation of the Philippines (NGCP), and the Energy Regulatory Commission (ERC), in compliance with the DOE’s decommissioning guidelines.
TPVI acquired the Naga Power Plant Complex in Barangay Colon, Naga City, Cebu, from Salcon Power Corporation in 2018. Since then, it has carried out rehabilitation and maintenance efforts to sustain the facility’s operations.
Earlier, AboitizPower, through its subsidiary Therma Mobile, Inc. (TMO), has mothballed two of its Bunker C-fired power barges in Navotas due to technical and commercial challenges. Despite the deactivation, TMO will continue operating its remaining two barges, TMO Mobile 3 and Mobile 5. The mothballed barges are set to return to service on February 1, 2027.
With the planned decommissioning, the company is expected to assess alternative energy strategies to align with its long-term power generation goals.