MANILA, Philippines–A subsidiary of Energy Development Corp. is all set to get incentives for its 150-megawatt Burgos wind renewable energy project in Ilocos Norte.
Citing a certificate from the Energy Regulatory Commission (ERC), EDC said its unit, EDC Burgos Wind Power Corp., was entitled to the Feed-in-Tariff (FIT) rate of P8.53 a kilowatt-hour (kWh) for its wind project.
EDC Burgos Wind Power Corp. is a wholly owned subsidiary of EDC.
Subject to adjustments as may be approved by the ERC, the project is entitled to the FIT rate for the power produced from Nov. 11, 2014, to Nov. 10, 2034, EDC said.
Distribution utilities all over the country, including the Manila Electric Co. (Meralco) that operates in Metro Manila and nearby areas, are starting to collect FIT allowance from customers as a fixed charge reflected on monthly bills.
Such fees are pooled and will be used to pay guaranteed rates (a form of incentive) to renewable energy developers to encourage similar investments.
The project is EDC’s first foray into the wind energy business and is its single largest investment to date.
A total of $450 million was invested by EDC in the Burgos wind project, including the $315 million in project financing with leading international and local banks led by EKF, Denmark’s export credit agency.