The PHINMA-led Trans-Asia Oil and Energy Development Corp. (Tarec) relinquished eight wind energy service contracts last year after it found these areas to be unsuitable for developing viable wind farms.
The company said in a regulatory filing that Tarec, its wholly owned subsidiary that focuses on renewable energy development (specifically wind), now has 12 wind energy service contracts left out of the 20 earlier granted by the Department of Energy.
“Nevertheless, the remaining 12 wind energy service contract areas still comprise a sizeable portfolio of wind sites with an estimated total capacity of about 400 megawatts,” Trans-Asia added.
Trans-Asia earlier said it expected to spend $1 billion for a 400-MW portfolio, based on the general rule that at least $2.5 million will be needed to produce a megawatt from a wind farm project.
The decision to pursue the wind power projects also rested on the issuance of the feed-in-tariff rates as these would assure developers of future cash flow since electricity end-users would be charged fixed amounts to cover the production of electricity from renewable sources. With this in place, utilities can spread the cost of clean power among its customers.
The FIT system is also expected to encourage investors to go into renewable energy development and production. The mechanism also ensures stable pricing for energy from renewable sources.
In the meantime, Tarec said it continued its development activities for the 54-MW San Lorenzo wind farm project in Guimaras as the company targeted to convert the planned power project from predevelopment stage to commercial stage.
“Negotiation on the terms and conditions of the engineering, procurement and construction (EPC) contract have been completed except for the final EPC price as the FIT rate for wind, [the application for] which was submitted on May 16, 2011, has yet to be approved by the Energy Regulatory Commission. The registration of the San Lorenzo project with the Board of Investments was approved on June 15, 2011. This will enable the project to avail [itself] of the incentives under the Renewable Energy Act of 2008,” Trans-Asia explained.