DOE approves wind power project in Aklan

MANILA, Philippines – The Department of Energy (DOE) gave the go signal for listed PetroGreen Energy Corp.’s (PGEC) 50-megawatt (MW) Nabas Wind Project in Aklan.

In a disclosure to the Philippine Stock Exchange on Tuesday, June 4, PGEC said it has received the Confirmation of Commerciality from the energy department.

PGEC president Milagros Reyes said the approval of the wind project would strengthen the company’s goal to provide “clean indigenous power” in several provinces in Visayas.

“Our goal is to provide clean indigenous power at the earliest possible time to meet the soaring power demand in Boracay, Aklan and Panay,” she said.

The confirmation of commerciality also allows the conversion of PGEC’s service contract from pre-development to development stage. The contract has a life of 25 years until 2034, according to the disclosure.

The company, fully-owned by listed PetroEnergy Resources Corp. (PERC), expects to complete the wind project by 2014.

The approval of the Nabas wind project in Aklan brings the number of DOE-approved wind energy projects to 4 in 2013.

Earlier, the energy department approved 3 other wind projects, including:

• 87 MW Burgos Wind Project in Ilocos Norte of Lopez-led Energy Development Corp. (EDC). Expected to be finished by 2014
• 54 MW wind power project in Guimaras of Phinma Group’s Trans-Asia Renewable Energy Corp. (Tarec). Expected to be finished either by 2014 or 2015 
• 67.5 MW wind power project in Rizal of Alternenergy Wind One Corp., led by former Energy Secretary Vince Perez. Expected to be finished in early 2015

DOE expects around 300 MW power capacity from a total of 5 wind power projects in 2016 including the 4 approved wind projects.

Feed-in tariff

In the hopes of attracting investors to the renewable energy sector, the government pushed for the Feed-in-Tariff (FIT) regime.

The FIT regime provides renewable energy players incentives such as cost-based compensation, among others.

The FIT rates approved by local power regulator Energy Regulatory Commission are as follows:

• P9.68 per kilowatt-hour (kWh) for solar
• P8.53 per kWh for wind
• P6.63 per kWh for biomass
• P5.90 per kWh for hydropower

DOE director for renewable energy Mario Marasigan said the incentive scheme has been received well by investors.

“The number of serious players committed to putting their wind projects into commercial operations and vying for FIT allocation continues to increase,” he said.

“Such competition can only be good for the country,” Marasigan added.

DOE said eligibility for FIT incentives would be implemented on a first-come, first-served basis. – Rappler.com