Trans-Asia seeks DOE nod for Guimaras wind farm
Phinma-led Trans-Asia Oil and Energy Development Corp. is seeking the Department of Energy’s seal of approval before it can put up a 54-megawatt wind farm in Guimaras.
According to Trans-Asia Oil president Francisco Viray, the company is still waiting for the “declaration of commerciality” before it can close any financing deals, such as the P4.3-billion debt facility that the firm is eyeing for the construction of the wind farm.
The declaration of commerciality, which will be granted by the Energy department, will confirm that the resources are available on the site and that the proposed power plant project is commercially feasible.
More importantly, this declaration will pre-qualify Trans-Asia as among the proponents that may get the chance to secure an allocation from the 760-megawatt installation target or the total capacity of renewable energy projects that will be allowed to be constructed within a three-year period.
By securing an allocation, a renewable energy project may avail of feed-in-tariff rates, a mechanism that will secure developers of fixed cash flows over a 20-year period.
Trans-Asia’s application was submitted last February, Viray said.
Late last year, Trans-Asia reported that it was finalizing a debt financing facility for the Guimaras wind farm. It also reported that the commercial terms of the engineering, procurement, and construction (EPC) contract were already under final negotiations.
The Guimaras wind farm project is being undertaken by the company’s wholly owned subsidiary Trans-Asia Renewable Energy Corp. (Tarec).
Tarec currently has 12 wind energy service contracts, which cover “a sizeable portfolio of wind sites, with an estimated total capacity of about 400 megawatts,” Trans-Asia earlier said.
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