6 firms vie for 200-MW allocation for wind projects

At least six wind developers have submitted their declarations of commerciality before the Department of Energy (DoE) in the hopes of being allowed to secure fixed tariff rates for their projects.

Energy Undersecretary Jose M. Layug Jr. identified the companies as Trans-Asia Oil Renewable Energy Corp., PetroEnergy Resources Corp., Energy Logics, Energy Development Corp., Alternergy and UPC Asia Corp.

By submitting declarations of commerciality, a firm becomes a potential candidate that can be awarded an allocation from the limited 760-megawatt installation target—which refers to the total capacity of renewable energy projects that will be allowed to be constructed within a three-year period. Only those projects given an allocation can avail themselves of the feed-in-tariff rates.

In the case of wind projects, only 200 MW of additional capacity will be allowed to come in within the next three years at a FIT rate of P8.53 a kilowatt-hour (kWh), which is lower than the P10.37 a kWh applied for by the National Renewable Energy Board last year.

This means that the DoE must have to further narrow down this list as it will not be able to give an allocation for all the six wind developers whose proposed wind power projects can generate more than 200 MW.

The declaration of the commerciality is only one of the criteria to be considered by the DoE in the allocation of the limited installation target. If the eligibility criteria will not be enough, the DoE would also consider a second round of qualification, which included four other possible options namely to implement a bidding process and using FIT rates as a ceiling; allocating the capacity equally among developers; implementing a first-come, first-served basis; and allowing developers to talk among themselves as to whose project will proceed first.—Amy R. Remo