Business World Online
Posted on July 07, 2014 10:45:43 PM
NORTHERN Luzon UPC Asia Corp. (NLUPC) has secured regulatory approval to invest P781.91 million in a transmission project that will connect its 81-megawatt (MW) wind farm in Ilocos Norte to the Luzon grid.
The Energy Regulatory Commission (ERC), in a June 2 decision released on Monday, authorized NLUPC to develop and own dedicated point-to-point facilities to connect its project to the transmission system of the National Grid Corporation of the Philippines (NGCP).
“The connection assets shall be used solely by NLUPC and should not be used directly to serve the end-users,” the ERC said.
It added that NGCP should be in charge of operating the connection assets, which would be developed and constructed in accordance with a grid impact study to avoid degradation of NGCP’s transmission system.
NLUPC is building an 81-MW wind power project in Barangay Caparispisan, Pagudpud, Ilocos Norte.
The wind project entails the commissioning of wind turbine generators, a medium voltage electrical collection system, a project substation and connection facilities.
“It plans to include the required interconnection lines for the wind project… to ensure that it can deliver power to the grid by the targeted commissioning date in July 2014,” the document read.
It noted that the transmission facilities are important to achieve commercial operations, which are targeted for January 2015.
“A provisional authority is thus urgently needed for it to ensure the timely construction and completion of the wind project,” the document further stated.
In order to connect the power project to the grid, NLUPC intends to invest P781.91 million -- covering structure and foundation, line hardware, wires and cables, and labor and engineering.
“The contract for the supply of materials for the proposed projects will be assigned to qualified suppliers and contractors following a competitive bidding and selection process. The funding will be sourced through NLUPC’s equity and loan,” the decision read.
NLUPC, according to the ERC, has sufficient financial and technical resources given the investors backing the $220-million wind project.
The company is a joint venture of Ayala Corp.’s AC Energy Holdings, Inc.; Philippine Investment Alliance for Infrastructure Fund (PINAI); and UPC Philippines Wind Holdco I. B.V.
UPC Philippines Wind is a wholly owned subsidiary of UPC Renewables Partners Ltd., while PINAI fund is composed of Government Service Insurance System, Dutch pension fund APG and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
“These shareholders have signed an investment framework agreement to develop wind power projects in Ilocos Norte through NLUPC as their joint venture company and committing the to finance the required funds to construct the first 81-MW project,” the decision stated.
It added that AC Energy will shoulder 64% of the project cost, PINAI will fund 32%, and the remaining 4% will come from UPC Philippines Wind.
On top of the 81-MW project, NLUPC secured the Energy department’s green light to build a 45-MW wind farm in Barangay Balaoi, also in the town of Pagudpud.
AC Energy, the power generation arm of diversified conglomerate Ayala, also operates a 33-MW wind farm in Bangui, Ilocos Norte. -- Claire-Ann Marie C. Feliciano source
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