Wednesday, November 12, 2014

Burgos wind farm gets perks

By MST Business | Nov. 12, 2014 at 11:10pm

The Energy Department has endorsed the application of Energy Development Corp. to avail of the preferential feed-in tariff rates for the 150-megawatt Burgos wind farm, considered the largest in Southeast Asia.

“EDC Burgos Wind Power Corp., an affiliate of Energy Development Corp., received the Energy Department’s certificate of endorsement for feed-in tariff eligibility,” EDC said in a disclosure to the stock exchange.

EDC said the endorsement covered the 150-MW Burgos wind power project, including the 87-MW Phase 1 and 63-MW Phase 2, for the purpose of qualifying the project under the feed-in tariff system.

The feed-in tariff system provides for incentives per renewable energy source as mandated by the Renewable Energy Act of 2001.

This means the 150-MW Burgos wind project can avail of the P8.53-per-kilowatt-hour feed-in tariff rate, once it starts full commercial operations.

The department earlier granted the first feed-in tariff eligibility to NorthWind Power Development Corp.’s 18-MW expansion, also located in Ilocos Norte.

EDC said the certificate of eligibility for feed-in tariff eligibility was issued by the department after validating the project’s successful commissioning in accordance with Department Circular No. DC 2013-05-0009.

The circular set the guidelines for the selection process of renewable energy projects under the feed-in tariff system and the award of certificate for feed-in tariff eligibility.

EDC successfully commissioned the Burgos wind project on Nov. 5.

The Burgos wind project is also the first to qualify under the feed-in tariff system. It features 50 units of Vestas V90 3-MW wind turbines.

Vestas received commissioning certificates for each of the 50 turbines, which were furnished to the department as proof of successful commissioning.

EDC invested $450 million in the project and recently closed a $315-million financing deal with EKF, Denmark’s export credit agency, and a group of leading international and local banks. source

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