EDC to start wind power project this year

MANILA, Philippines - Energy Development Corp. (EDC) said it is optimistic it could start the construction of its 86-megawatt (MW) wind power project in Burgos, Ilocos Norte within the year.

EDC president Richard Tantoco said they would need to raise about $100 million to fund the company’s the 30-percent equity share in the project.

“If the Burgos wind project moves ahead, then we’ll have to tap the market. I think we’re looking at about $100 million initially,” he said.

He said the rule of thumb for investments in wind power projects is about $2.7 million per MW. But they would have to finance only 30-percent equity and the remaining 70 percent would be funded through borrowings.

Tantoco said they are now in the process of securing right-of-way (ROW) for the Burgos project. “For Burgos, we’re pushing in terms of getting all the right-of-way done.” He said they are also looking closely on the pending application of feed-in tariff (FIT) for renewable energy projects.

“We’re also in the process of monitoring the developments in the feed-in tariff,” he said. “We’re monitoring the FIT very closely. I wouldn’t put it in the P15 range, maybe closer to the P12 range, P10-P12 range.”

FIT offers guaranteed payments over a definite period of time to renewable energy developers utilizing emerging resources such as wind, solar, run-of-river hydro, biomass and ocean. The FIT charge would be reflected in the electric bills in a separate portion under the universal charge (UC).

The EDC chief said they have also started some groundworks for the Burgos project.

“We’re finalizing the negotiations with two suppliers and at the appropriate time we will close that,” he said.

EDC, the renewable energy arm of the Lopez Group, is also planning to put up wind power projects in Mindanao, particularly in Camiguin, Dinagat and Surigao.

It also has wind power project applications in Balaoi-Pagudpud also in Ilocos Norte and Taytay, Rizal.