Aboitiz Power Corporation (PSE:AP) subsidiary, Therma Mobile Inc. (TMO), has announced the temporary deactivation—or mothballing—of two of its Bunker C-fired power barges, Mobile 4 and Mobile 6, at the Navotas Fishport Complex. The shutdown, effective February 14, 2025, is set to last until February 1, 2027, and comes as a response to both technical and commercial challenges affecting the barges' operation.
While the move is officially categorized as "mothballing," meaning the facilities are not permanently decommissioned but rather placed in reserve status, it raises critical questions about energy security, generation capacity, and the overall stability of the Philippine power grid.
Power Barges and Their Role in the Grid
Power barges are floating power plants, typically moored near coastal areas, designed to provide electricity to the grid as needed. Their key advantage lies in their mobility—offering a flexible solution to supply shortages, especially in island nations like the Philippines where power demand fluctuates regionally.
TMO’s four power barges have a combined generation capacity of 242 megawatts (MW), with Mobile 4 and Mobile 6 contributing a significant share. While the company’s two remaining barges, Mobile 3 and Mobile 5, will continue operations, the loss of two barges may have short-term implications for power reliability, particularly if demand spikes or unforeseen outages occur elsewhere in the system.
Why Are These Barges Being Mothballed?
TMO cited “technical and commercial challenges” as the primary reasons for the mothballing. While specifics were not disclosed, these challenges likely include:
- Rising Maintenance Costs - aging infrastructure often requires more intensive maintenance to remain operational and efficient.
- Fuel Prices and Economic Viability - Bunker C fuel, a type of heavy oil, is typically more expensive and less environmentally friendly than alternative energy sources. With the Philippines actively shifting toward cleaner energy, running these barges may have become less cost-effective.
- Market Dynamics - the Independent Electricity Market Operator of the Philippines (IEMOP) oversees the trading of electricity in the Wholesale Electricity Spot Market (WESM). If TMO’s barges struggled to secure favorable power supply agreements, their operation may have become financially unsustainable.
How Will This Affect Power Supply?
While the Philippine energy grid is diverse—drawing from coal, hydro, natural gas, and an increasing share of renewables—peaking plants like TMO’s barges play a crucial role in stabilizing supply during high-demand periods. The removal of 50% of TMO’s capacity raises concerns about how the energy sector will compensate for this loss.
The National Grid Corporation of the Philippines (NGCP) and the Energy Regulatory Commission (ERC) were notified of the mothballing, signaling that contingency plans may be in place. However, energy reserves could be strained, particularly if other power plants face outages or if demand surges unexpectedly.
AboitizPower acquired Therma Mobile in 2011, rehabilitated its facilities, and secured long-term supply agreements with Manila Electric Co. (Meralco). However, shifting industry trends suggest that the company is pivoting toward renewables and modernized power solutions.
The company has set a target of 4,600 MW in renewable energy capacity by 2030, encompassing solar, wind, geothermal, hydro, and battery storage. Given the increasing policy emphasis on decarbonization and sustainability, the mothballing of traditional fuel-powered assets like TMO’s barges aligns with AboitizPower’s broader strategic shift.
While TMO’s mothballing of Mobile 4 and Mobile 6 is officially a temporary measure, it reflects broader trends in the Philippine energy sector—where aging fossil-fuel plants are increasingly challenged by economic, environmental, and regulatory pressures.
The key question remains: Will these barges be reactivated in 2027, or will they eventually be phased out as part of the country’s transition toward cleaner energy? For now, power industry stakeholders will be closely monitoring grid stability, market conditions, and government policy to determine the long-term viability of traditional thermal plants in an evolving energy landscape.