Ayala seen joining 2 wind projects
MANILA, Philippines—Ayala Corp. is expected to participate in two new wind-farm projects of NorthWind Power Development Corp. in Aparri, Cagayan, and Pamplona, Cagayan Valley, following its acquisition of a 50-percent stake in the renewable energy firm.
NorthWind chairman Ferdinand Dumlao told reporters that with their newly forged partnership with the Ayala, “we are confident that we can embark on these new projects.”
Last week, Ayala’s wholly owned subsidiary Michigan Power Inc. acquired the 50-percent stake in NorthWind, bolstering the group’s serious interest in the local power-generation sector.
NorthWind targets to implement the two new power projects through its two subsidiaries.
Northpoint Wind Power Corp. plans to develop a 40-megawatt wind project to be located along the shoreline in Barangay (village) Dodan, Aparri. The company was expected to spend $95 million to put up 25 wind turbines that will provide power to electric cooperatives in Cagayan.
NorthEast Wind Systems Corp. plans to construct another 40-MW wind farm in Pamplona. Power to be generated from 16 turbines is expected to be sold to the Luzon grid on or before 2015.
However, Dumlao pointed out that “certain constraints” such as the issuance of final feed-in tariff (FIT) and the lack of necessary transmission facilities might delay the implementation of the projects.
“Like any developer, we are awaiting the approval of the feed-in tariff. The development of our expansion projects hinges upon approval of a viable feed-in tariff, which we hope the petition [for which] will be filed on or before March 31 by the National Renewable Energy Board with the endorsement of the Energy Department,” Dumlao explained.
The FIT measure is among the most awaited mechanism under the Renewable Energy Law because it will determine the economic and financial viability of many projects in the pipeline.
Under the FIT system, renewable energy developers are assured of future cash flow as electricity end-users will be charged fixed amounts to cover the cost of producing energy from renewable sources. With this in place, utilities can spread the cost of clean power among its customers, Dumlao added.
