DOE clears P2.4-B solar project

MANILA, Philippines - The Department of Energy has issued a certificate of commerciality to South Korean-led Mirae Asia Energy Corp. for a P2.4-billion solar project in the province of Ilocos Norte, a ranking official said.

With the COC, the company can now proceed with the construction of its 20-megawatt solar project in Currimao, Ilocos Norte, said Mirae Asia vice president Lito Badua.

The project covers 60 hectares in Brgy. Paguludan.

“We are looking at starting construction around the fourth quarter,” he said.

The company aims to start full commercial operations in late 2014, with construction set to start in nine to 12 months.

“This is in response to the call of government to put up renewable and indigenous sources of energy,” Badua said.

Badua said the company hopes to avail of incentives under the feed-in-tariff (FIT) system of P9.68 per kilowatt-hour.

The FIT regime is a form of incentives for renewable energy players.

FIT offers cost-based compensation to renewable energy players, among other perks.

The FIT rate approved by the Energy Regulatory Commission (ERC), the power regulator, are as follows: P9.68 per kilowatt-hour for solar; P8.53 per kwh for wind, P6.63 per kwh for biomass and P5.90 per kwh for hydropower projects.

The company hopes to raise the funding requirements through equity and loans, Badua said.

“Funding will be equity and loans from local and foreign banks,” he said.

Mirae Asia is in talks with the National Grid Corp. of the Philippines (NGCP), the country’s transmission highway operator, for the transmission service agreement and connection agreement.

It also secured the environmental compliance certificate for the project.