Listed firm PetroEnergy Resources Corp. has secured the Department of Energy’s (DoE) endorsement for its planned 50-megawatt wind farm in Nabas, Aklan, and 20-MW Maibarara geothermal facility in Mt. Makiling.
In a disclosure to the Philippine Stock Exchange, PetroEnergy said Maibarara Geothermal Inc. (MGI), in which it owned a 65-percent stake, was able to secure a certificate of endorsement (COE) from the DoE, which validated that the geothermal project was “consistent” with the government’s Power Development Plan.
A COE was crucial to securing a certificate of compliance for a power generation facility. Issued by the Energy Regulatory Commission, the COC, in turn, would allow a power generation firm to either start or continue operating power facilities.
MGI was also able to sign a memorandum of agreement with the DoE for the establishment of the ER 1-94 trust accounts for the one-centavo-per-kilowatt-hour financial benefits accruing to the host communities of the Maibarara project.
“The issuance of the COE and the execution of the ER 1-94 MOA are positive indicators that the permitting process for the Maibarara project is progressing as scheduled and is on track to its targeted commercial operation in October 2013. Development of the site by MGI, where the 20-MW power station will be put up, has reached 85-percent completion (to date),” PetroEnergy said.
PetroEnergy also disclosed that the National Commission on Indigenous Peoples (NCIP) Region VI/VII issued on February 9 a Certificate of Non-Overlap (CNO) for the Nabas wind farm project in Aklan.
According to PetroEnergy, the CNO “confirms that there are no existing ancestral domain claims within the 2,000-hectare service contract area. The CNO is among the material requirements for a power project’s declaration of commerciality.”
The Nabas project, which is currently in its third year of feasibility studies, involved the construction of a wind farm that can generate 40 MW to 50 MW in additional capacity to be supplied to the Visayas Grid by 2014.
However, the final investment decision for the Nabas project is hinged on the issuance of the final feed-in-tariff (FIT) rates by the ERC. The FIT mechanism is among the critical consideration in a renewable energy project as the approved rates will determine if a project is economically feasible and viable. It will likewise assure developers of future cash flows since electricity end users will be charged fixed amounts to cover production of energy from renewable sources.—Amy R. Remo