Trans-Asia Oil and Energy Development Corp. has secured a “declaration of commerciality” certificate from the Department of Energy for its planned 54-megawatt wind farm in San Lorenzo, Guimaras.
In a disclosure to the Philippine Stock Exchange Monday, Trans-Asia said the DOE certificate also affirmed the conversion of its existing renewable energy service contract to “development/commercial stage” from pre-development stage. The contract is valid for 25 years starting 2009 or until Oct. 22, 2034.
The declaration of commerciality signifies the DOE’s confirmation of the availability of resources onsite and of the technical and commercial feasibility of the proposed wind farm.
More importantly, the declaration prequalifies Trans-Asia as among those that may avail themselves of the feed-in-tariff (FIT) rates, which will ensure fixed cashflow for the project over a 20-year period. For wind projects, the Energy Regulatory Commission has approved a FIT rate of P8.53 a kilowatt-hour (kWh).
“The DOE will determine the project’s eligibility to avail (itself) of the feed-in tariff upon commissioning and DOE affirmation of the start of commercial operations,” Trans-Asia explained.
“Negotiations on the [engineering, procurement and construction or] EPC contract, contracts for the operation and maintenance, project management and for the project’s P4.3-billion debt financing facility, have all been completed,” the company added.
The Guimaras wind farm project is being undertaken by the company’s wholly owned subsidiary Trans-Asia Renewable Energy Corp. (Tarec).
Tarec has 12 wind energy service contracts, after relinquishing eight contracts last year. The areas covered by the eight contracts that were dropped were found to be unsuitable for developing viable wind farms.