Local, foreign investors keen on RP wind power projects

A group of at least seven local and foreign companies have expressed interest in investing in the country’s wind power projects, Energy Secretary Vincent S. Perez said.

During the launching of the Philippine Wind Investment Kit last Monday, holding firm Philippine Investment and Management Corp. (Phinma) said it is interested in developing the 25-megawatt (MW) wind power project in Sual, Pangasinan.

A memorandum of understanding (MOU) among the Department of Energy (DOE), Phinma and other concerned parties for the development, commercialization and utilization of wind power is currently being prepared.

Perez added that Wind Prospect, a leading wind energy developer in Australia, has likewise signified interest in exploring wind power areas in the country. Wind Prospect built the second wind farm in the UK in 1992 and has since gone on to be the industry leader in the UK, Ireland and Australia.

The Wind Power Investment Kit outlines the country’s wind energy program as well as highlights the various prospects and opportunities for the development, utilization and commercialization of wind power.

Perez earlier announced that 16 wind power projects areas will be offered to investors with a total wind power capacity of up to 345 MW of electricity. Of these, 11 wind sites are located in Luzon, four in the Visayas and one in Mindanao.

Representatives of energy companies from the US, Germany, Finland, Denmark, Sweden, Spain, Netherlands, China, Japan, New Zealand, Australia, India, Canada and Belgium also attended the launching.

Other companies that signified interest in harnessing the country’s wind power potential are Smith Bell-Resco (SB-RESCO), Philippine Hybrid Energy Systems Inc. (PHESI), First Philippine Energy Corp. (FPEC), Pacific Manufacturing Resources (PMR) and Philippine National Oil Company-Energy Development Corp. (PNOC-EDC).

"I am very pleased with the positive feedback we have been receiving after our launching. With the various incentives that await investors, we are confident that other renewable energy investors would seriously take a look at our wind potential areas and consider investing here," Perez said.

Among the incentives include the waiver of production bonus on the first project and payment of production bonus to the government only after the project has fully recovered pre-operating expenses as stated under Executive Order 462, the law encouraging private sector participation in the exploration and development of ocean, solar and wind energy resources.

Other incentives include income tax holiday, reduced duty rates for imported capital equipments and other Board of Investments (BOI) mandated incentives.

Investors can also avail of financial assistance from lending agencies such as the Development Bank of the Philippines (UNDP), United Nations Development Programme-Global Environment Facility (UNDP-GEF) and Philippine Export and Import Bank (PhilEXIM), Perez said.

DBP has identified several financing packages under its Wind Energy Financing Program, RE Project Preparation Revolving Fund, Rural Power Project for Type A Beneficiaries, Rural Power Project for Type B Beneficiaries and CDM Initiatives.

The UNDP-GEF, on the other hand, offers assistance in the project preparation and loan guarantee for the project. PhilEXIM, for its part, provides loan guarantees to selected wind power projects.

The 16 wind power areas that are being offered are the 15-MW wind power project in Bayog, Ilocos Norte; 25-MW in Sual, Pangasinan; 50-MW in Mauban, Quezon; 10-MW in Abra de Ilog, Occidental Mindoro; 20-MW in Bulalakaw, Oriental Mindoro; 10-MW in Manoc-Manoc, Aklan; 20-MW in Pandan, Antique; 20-MW in San Remegio, Antique; 40-MW in Pagudpud; 50-MW in Carranglan, Nueva Ecija; 25-MW in Caliraya, Laguna; 1.2 to 5-MW Wind-Diesel Hybrid in Marinduque; 1.2 to 5-MW in Tablas Island; 1.2 to 5-MW in Masbate; 50-MW in Nuventa, Surigao del Sur; and 30-MW in San Carlos, Negros Occidental.