EDC close to getting permit for wind farm

Business World Online
Posted on November 12, 2014 11:19:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter

A 150-MEGAWATT (MW) wind farm in Ilocos Norte has moved a step closer to starting operations and delivering electricity to the market, its owner Energy Development Corp. (EDC) said yesterday.

The Lopez-led power producer said in a statement that its subsidiary, EDC Burgos Wind Corp., received the Department of Energy’s (DoE) certificate of endorsement (CoE) for the wind power project’s eligibility under the feed-in tariff (FIT) scheme.

Feed-in tariffs are mainly long-term contracts that shield renewable energy producers from price uncertainties and encourage them to invest more.

“The CoE for FIT eligibility was issued by the DoE after validation of the project’s successful commissioning,” EDC said.

The project developer will now have to wait for a certificate of compliance under the FIT to be issued by the Energy Regulatory Commission.

After that, EDC Burgos can proceed with commercial operations of the project. This means electricity generated by the plant will be dispatched to the grid at a rate of P8.53 per kilowatt-hour over a period of 20 years.

Just last Friday, EDC announced the successful commissioning of the wind farm. The facility has since been connected to the grid and started delivery power to the country’s transmission network.

EDC invested $450 million to build the wind farm. It secured $315 million in financing from a group of local and international banks last month.

Denmark’s export credit agency, Eksport Kredit Fonden, guaranteed a portion of the dollar loan component of the financing. Australia and New Zealand Banking Group Ltd., DZ Bank AG, ING Bank NV, Malayan Banking Berhad, and Norddeutsche Landesbank Gironzentrale served as the lead arrangers for the foreign tranche of the loan financing.

The local tranche, on the other hand, was arranged by PNB Capital and Investment Corp. The other local lenders were BDO Unibank, Inc., Land Bank of the Philippines, Philippine National Bank and Security Bank Corp.

The Burgos wind project is one of the largest investments in Ilocos Norte. The facility occupies a 600-hectare site, straddling barangays Saoit, Poblacion and Nagsurot in the municipality of Burgos. It is also EDC’s first wind power project after establishing itself as the country’s largest geothermal producer, operating 12 power facilities in five geothermal service contract areas here.

EDC shares closed at P8.13 apiece yesterday, up 3.04% or 24 centavos from Tuesday’s closing price. source