EDC starts 87-MW wind energy project

Business Mirror

Published on Sunday, 23 June 2013 18:35

Written by Paul Anthony A. Isla

ENERGY Development Corp. (EDC), the country’s largest geothermal producer, on Friday issued the Notice to Proceed (NTP) to its wind farm contractor Vestas.

EDC said in a statement that the issuance of the NTP marks the start of actual construction works at site for the initial 87-megawatt (MW) wind-energy project. The original plan is to put up a 150-MW wind farm.

After the project’s groundbreaking ceremony on April 19, EDC said several preparatory early works had been undertaken. Following the issuance of the NTP, full construction effort will immediately proceed at the 600-hectare site that straddles three barangays—Saoit, Poblacion and Nagsurot—in Burgos, Ilocos Norte.

EDC said Denmark-based Vestas, a wind-turbine manufacturer, will construct the 87-MW wind farm as well as ancillary equipment and facilities.

The Burgos wind project (BWP) also signed a 10-year operations and maintenance agreement with Vestas, which features an energy-based availability guarantee.

The Department of Energy (DOE) granted a certificate of confirmation of commerciality on May 16.

“The BWP is a major pillar of our P32-billion investment plan this year. We are proceeding as planned given our fully funded business plan and the proven Vestas technology. We are pleased to announce that the construction of the BWP will now commence and we are confident that BWP will be the first to achieve commercial operations by 2014,” Richard Tantoco, EDC president and chief operating officer, said.

He added that total investment cost for the project is expected to reach $300 million.

EDC recently closed an $80-million club loan facility and P7-billion fixed-rate bond offer to boost cash reserves. “It is deliberate that our P7-billion fixed rate bond is a single purpose facility meant solely for the funding of the BWP as this readily covers the spend on BWP this 2013,” Tantoco added.

BWP marks EDC’s foray into the wind-energy business. Once completed it will be the largest wind farm in the Philippines.

“EDC is focused on clean energy. We have geothermal and hydro generation and with Burgos, the three technology platform will be complete.  Now that we have honed our skills to develop a viable wind project, we intend to add an additional 21 units of 3-MW wind turbine generators to bring BWP’s capacity up to 150 MW,” Tantoco added.

The BWP is one of the largest investments to date in Ilocos Norte. Once operational, it is expected to generate about 233 gigawatt-hour of electricity a year, enough to power more than a million households and augment the Luzon grid’s dependable capacity, which needs an additional 4,200 MW in the next 10 years.   source