NEDA set to approve wind power project

The National Economic and Development Authority (NEDA) is set to approve tomorrow the first phase of a 40 Megawatt (MW) wind power plant project to be undertaken by the Philippine National Oil Co. (PNOC) in Ilocos Norte.

Energy undersecretary Cyril Del Callar said the wind power project will be the very first in the country and in Asia.

"We hope to get approval of the PNOC-Energy Development Corp. from the Investment Coordination Council (ICC) of NEDA on Oct. 25," Callar said.

He said other wind power projects in the pipeline include those that would be undertaken by Northwind Power and Smith Bell-RESCO both in Ilocos Norte.

The PNOC-EDC wind project will have three phases. The project is expected to generate some 120 MW of electricity in the next few years.

The Northwind project, on the other hand, will have a capacity of 60 MW and Smith Bell a capacity of 40 MW.

DOE data show that new and renewable energy (NRE) sources are expected to generate 160 MW in 2001-2007 and some 257 MW in 2008 to 2011.

The PNOC-EDC wind project cost is estimated at $54 million and will be financed under the Japanese government’s Special Yen Loan Package administered by the Japan Bank for International Cooperation (JBIC).

The power plant project will involve the installation of 56 units of 750 kilowatts wind turbine generators.

PNOC-EDC chairman Sergio Apostol said the $54 million loan will have a maturity of 30 years with a 10-year grace period. It will have an interest rate of 0.3 percent.

Apostol said they would need some $36 million for the phase 2 and about $34 million for the last or third phase.

The wind power project is part of the Energy Department’s action plan to develop new and renewable energy sources. The implementation of the project would greatly contribute to strenthening the country’s self-efficiency for energy through the development of domestic energy source. – Donnabelle Gatdula