Napocor to install add’l 103MW capacity in off-grid areas by 2016

MANILA, Philippines - State-owned National Power Corp. (Napocor) is aiming to install 103 megawatts (MW) additional power capacity in off-grid areas by 2016, its top official told The STAR.

This is in line with Napocor’s missionary electrification mandate under the Electric Power Industry Reform Act of 2001, its president, Froilan Tampinco said.

The target also includes putting up 518 circuit-kilometers of transmission lines, 45 megavolt-amperes substations – all in off-grid areas.

“Napocor continues to pursue our mandate to provide electricity to off-grid areas, particularly in areas where private investors hesitate to come in due to lack of infrastructure and political and security concerns,” Tampinco said as he highlighted his accomplishments as head of the power company.

Tampinco has tendered his resignation due to “personal reasons” and is set to leave the agency by Aug. 1.

Upon assuming office in 2008, Tampinco said Napocor installed diesel power plants in Cuyo, Palawan (500 kw) and in Siasi, Sulu (1,000 kw) and Power Barge 109 in Tablas, Romblon (1,000 kw).

Napocor also upgraded three diesel power plants in Marinduque.

“We installed transmission lines in Occidental Mindoro and Catanduanes and completed four substation projects in Palawan and Catanduanes,” Tampinco said.

The following year, Napocor installed 12,718 kw of new capacities in 34 Small Power Utilities Group (SPUG) areas nationwide, from as far north as Cagayan down to Basilan and Sultan Kudarat in southern Philippines.

“We were also able to construct 154 diesel-fired mini grids in 102 barangays in Masbate under the Philippine Rural Electrification System project. We were also able to energize 4,394 households in 46 barangays in Masbate, Camarines Sur, Cagayan, Antique and Guimaras by putting up 1,052 kw in new capacity,” Tampinco said in his report.

Napocor continued to provide additional capacity in 2010, accounting for 6,528 kw in new capacity.

It also put in place 154 power plants and 5,219 solar home systems in Masbate.

“As a result, we were able to light up 18,000 homes in 128 barangays located in 14 municipalities in Masbate,” he said.

In 2011, Napocor installed 4,365 kw in new capacity in Batanes, Western Samar, Basilan and Sultan Kudarat.

Last year, the agency installed a total 14,186 kw of new and augmentation capacities in 21 different power plants and areas nationwide while in in 2012, Napocor installed a total of 11,300 kw of additional rented capacity in eight diesel power plants in Batanes, Aurora, Palawan, Romblon, Masbate, Siquijor, Basilan and Sulu.

“At present, we continue to gather momentum in implementing energy programs in SPUG areas up to present,” Tampinco said.

In Mindanao, Napocor continues to provide reliable services despite challenges such as the seasonal effects of Lake Lanao’s water level and the lack of repair of its plants.

Napocor also rehabilitated 2,608 hectares of watershed areas from 2008 to 2012.

“At the same time, we continuously update our dam safety protocols and flood control programs in keeping with international best practices,” said Tampinco.

Napocor manages 11 watersheds and 22 dams.

However, with the sale of its generation assets, Napocor had to implement management policy changes.

“With the sale of our generation assets, we can no longer justify maintaining a huge workforce. In 2003, Napocor had 4,800 plantilla and non-plantilla employees. By end of 2009, this was reduced to 2,900 employees. Early this year, we had to implement the long overdue reorganization, which further reduced our manpower to 2,455 employees,” Tampinco said.

The outgoing Napocor chief also trumpeted the agency’s financial recovery.

In 2008, Napocor reported a net loss of P7.2 billion, in sharp contrast to the net income in 2007, which was reported at P136 billion.

“In 2009, we were able to bring down our net loss to P2.87 billion, 50 percent lower than our projected net loss of P5.74 billion for that year. The net loss was further reduced to P2.78 billion in 2010,” he said.

In 2011, Napocor further cut the net loss to only P18.87 million, or less than one percent of reported loss in 2010.

“We reaped the fruits of our sacrifice and hard work over the years in 2012 when for the first time after the separation of the books of Napocor and Transco, we reported a net income of P398 million,” Tampinco added.