Sunday, January 5, 2014

Power firm readies renewable energy venture


Business World Online
Posted on January 05, 2014 10:08:32 PM

ASEA ONE Power Corp. plans to proceed with development of its maiden renewable energy project -- a 12-megawatt (MW) biomass power plant in Aklan -- this quarter, a senior company official said on Friday last week.

“Hopefully, we will commence site development by the first quarter of 2014 as we complete financial closure by the end of January,” Ernesto V. Tan, Asea One senior vice-president and chief financial officer, said in a text message when asked for updates on the company’s project.

Mr. Tan said Asea One has already completed all studies necessary for the company’s first biomass project.

SUSTAINABILITY
He said the design of the project, which will use wood chips as feed stock, incorporates a reforestation program to ensure sustainability.

The project is expected to be completed within 18 to 22 months from start of work at the project site, according to the official.

In September last year, Mr. Tan said the company had earmarked approximately $37 million for the power project -- to be funded by a combination of loan and equity.

Asea One tapped DP CleanTech, a firm based in Europe, as the engineering, procurement and construction contractor of the project.

Mr. Tan had said his company will apply for coverage of the 12-MW biomass plant -- which will be built in the municipality of Balite in Aklan -- under the government’s feed-in tariff (FIT) program. Under the FIT program, which sets a cap on capacities per type of renewable energy, accredited developers will dispatch electricity from their projects to the grid at a fixed rate for a period of 20 years. However, projects have to be completed first in order to be covered by FIT.

The Energy Regulatory Commission approved in July last year FIT rates for run-of-river hydro (P5.90 per kilowatt-hour); biomass (P6.63/kWh); wind (P8.53/kWh); and solar (P9.68/kWh).

The rates are based on the assigned installation ceilings per technology, which total 750 MW. Under this ceiling, run-of-river hydro and biomass projects are allocated 250 MW each; wind power, 200 MW; and solar power, 50 MW.

Asea One -- a Philippine-based renewable energy developer and power generation company -- plans to expand its portfolio by developing more biomass projects with a total capacity of 60 MW by 2020. -- Claire-Ann Marie C. Feliciano   source

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