Ayala to put up more wind farms in Luzon

Manila Times.net

AYALA Corp. (AC) aims to put up more wind power projects in Luzon following the conglomerate’s investment in NorthWind Power Development Corp.

Ferdinand Dumlao, NorthWind chairman, said the Ayala group will infuse P512 million in NorthWind, exclusive of additional payments dependent on certain performance indicators, to help jump start its two 40-megawatt wind projects in Aparri and Pamplona, Cagayan.

“We are confident we can embark on these new projects,” Dumlao said.

AC, through wholly owned unit Michigan Power Inc., recently acquired a 50 percent stake in NorthWind, the first and largest wind farm in the Philippines and Southeast Asia. The 33-megawatt Bangui Bay wind farm supplies part of the electricity requirement of Ilocos Norte.

NorthWind, through units NorthPoint Wind Power Corp. and NorthEast Wind Systems Corp., is expected to spend around $95 million for its two new wind projects in Cagayan.

The wind farms are scheduled for operations on or before 2015.

Dumlao said the projects would hinge on the approval of the feed-in-tariff for renewable energy projects, a tariff incentive that pegs green power developers’ returns over a certain period.

“The development of our expansion projects hinges upon approval of a viable feed-in tariff, which we hope that the petition will be filed on or before March 31 by the National Renewable Energy Board with the endorsement of the Energy department,” Dumlao said.

The company is also awaiting the commitment of the National Grid Corp. of the Philippines to upgrade its transmission facilities, which would connect the wind farms to the Luzon grid.

“For example for Cagayan, if we have a financial closing by September, two years from now or by 2013, the transmission facilities should be in place,” Dumlao said.

AC shares closed at P357.40 apiece on Wednesday, down from P359 the day before.
Euan Paulo C. Añonuevo