Wind projects in Ilocos Norte, Rizal get DOE certifications

Local power developers Energy Development Corp. and Alternergy Wind One Corp. secured from the Department of Energy last Friday the “declaration of commerciality” for their wind power projects in Luzon.

The certificates for the declaration and confirmation of commerciality was granted to EDC’s 87-megawatt wind farm in Burgos, Ilocos Norte, and for Alternergy’s 67.5-MW Pililla wind power project in Rizal, the two companies disclosed in separate statements.

“This milestone affirms our efforts to pursue and fast-track the project in order to be the first to achieve commercial operations by 2014,” said EDC president Richard B. Tantoco.

The $300-million Burgos wind project, EDC’s first foray into the wind energy sector, will be one of the biggest investments to date in Ilocos Norte. EDC broke ground for the project last April 19 after signing a contract with Vestas, the world’s leading wind turbine manufacturer, last March 1. The company targets to start commercial operations for the wind farm within the third quarter of 2014.

“We have the distinction of having over seven years of accurate wind data so we are absolutely certain of our site and the wind resource. With this, we are rapidly taking all necessary steps to increase the capacity of the Burgos wind project from 87 MW to 150 MW,” Tantoco added.

Vincent S. Perez, president of Alternergy and former energy secretary, said in a separate statement that the awarding was an “important milestone” as the company moved forward with the project.

“We are ready to commence construction of the Pililla wind farm. Our technical team has thoroughly laid down the site planning, logistics and engineering to deliver the wind farm in the most timely manner,” he said.

The wind farm project is being developed by Alternergy in partnership with Korea East West Power, a subsidiary of Korea Electric Power Co. (Kepco). The facility is expected to start commercial operations by early 2015.

By granting the certificate for the declaration of commerciality, the DOE is confirming the availability of adequate resources on site and the technical and commercial feasibility of the proposed wind farms.

The declarations will pre-qualify EDC and Alternergy for a chance to secure an allocation from the 760-megawatt installation target or the total capacity of renewable energy projects that will be allowed to be constructed within a three-year period.

Securing an allocation will make the wind power project eligible for the feed-in-tariff rate, a mechanism that will secure the developer of fixed cash flow over a 20-year period.

In the case of wind projects, only 200 MW of additional capacity will be allowed in the next three years at a FIT rate of P8.53 a kilowatt-hour (kWh).

According to Perez, the Pililla wind farm would involve the construction and installation of 27 wind turbines along the ridge of the mountainous Rizal province.