ABOITIZ POWER Corp. (AboitizPower) said it would shut down two fossil fuel power plants in Naga City, Cebu, with a combined capability of 45.08 megawatts (MW).
Therma Power-Visayas, Inc. (TPVI) will decommission its 44.64-MW Naga Oil-Fired Power Plant and 0.44-MW Black Start Diesel Engine Generating Unit, each positioned on the Naga Power Plant Complex, AboitizPower said in a stock exchange disclosure on Thursday.
AboitizPower said TPVI received a letter of confirmation from the Department of Energy, effective March 31, approving the decommissioning of the ability plants.
“The decommissioning was pursued in view of the technical and operational problems with the plant caused mainly by the advanced age of the diesel engines,” the corporate said.
Notices regarding the confirmation will probably be sent to relevant offices and entities, including the Independent Electricity Market Operator of the Philippines, the National Grid Corp. of the Philippines, and the Energy Regulatory Commission, AboitizPower said.
TPVI, a completely owned subsidiary of AboitizPower through Therma Power, Inc., acquired the Naga Power Plant Complex from its previous operator, Salcon Power Corp., in 2018. Since then, TPVI has undertaken “extensive rehabilitation, operation, and maintenance of the power.”
Last week, AboitizPower announced that one other subsidiary, Therma Mobile, Inc., had temporarily shut down two power barges in Navotas City resulting from technical and industrial challenges. Operations are scheduled to resume on Feb. 1, 2027.
On the local bourse on Thursday, AboitizPower shares declined by 1.17% to shut at P42.20 each. — Sheldeen Joy Talavera
