PSALM to rush sale of power barges

The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) has heeded the call of the Department of Energy to rush the sale of four power barges to help stabilize the power supply in Mindanao, according to Energy Secretary Jose Rene D. Almendras.

Almendras, who also sits in the board of PSALM, told reporters that the planned sale was “moving already” with the power firm rushing the completion of the grid impact study (GIS).

“They’re rushing it. They’ll get it this month so they can bid out the power barges by March as scheduled,” Almendras added.

The GIS will help determine if the electricity generated by Power Barges 101, 102, 103 and 104—each of which can generate 32 megawatts—can be absorbed by the Mindanao grid or if the existing transmission lines were enough to transmit the electricity from the power plant to the substations.

The study is reportedly being conducted by the country’s transmission operator, National Grid Corp. of the Philippines (NGCP).

Almendras said in an earlier interview with the Inquirer that he wanted PSALM to rush the sale of the government-owned diesel-fired power barges as Mindanao was expected to suffer supply shortages of about 100 MW to meet peak demand alone. More capacity will be needed if the intention was to have in place the ideal power reserve levels that could avert rotating brownouts in Mindanao in case any one of the facilities there bog down.

Once sold, PB 101, 102, 103 and 104 can already be repaired and moved to Mindanao.

PSALM earlier announced that it targeted to hold the bidding for the sale of PB 101, 102, 103 and 104 by March this year. The winning bidder is mandated under the terms of contract not only to repair the diesel-fired barges but to also move and station these facilities in Mindanao for at least three years.

Commissioned in 1981, PB 101 and PB 102 are moored in Barrio Obrero, Iloilo City, while PB 103 and 104, which were commissioned in 1985, are in Botongon, Estancia, Iloilo, and at the Holcim Compound, Ilang, Davao City, respectively. Since they began operations, these barges have been moved about to provide power support to various regions.

State-run National Power Corp. earlier bought the power barges from a Japanese firm, Hitachi Zosen Corp. These barges were used to help ease a severe power shortage in the Philippines, providing required support in the Visayas and Mindanao.