MANILA, Philippines - The Asian Development Bank (ADB) and the Japanese government will jointly finance the conduct of feasibility studies for wind power facilities in Northern Philippines.
In a statement, ADB said a technical assistance grant of up to $630,000 from the Asian Clean Energy Fund (ACEF) under the Clean Energy Financing Partnership Facility, which is funded by the government of Japan and administered by ADB, will be used to do preparatory work for three potential wind farm projects in Luzon.
The preparatory work will include wind assessments, annual energy production estimates, assessment of environmental impacts and social acceptability, assessment of wind energy related issues, and an evaluation of transmission connection issues.
“Energy plays a vital role in economic growth and poverty reduction and ADB is playing a prominent role in helping countries like the Philippines, which are heavily reliant on imported coal and oil, to tap renewable power sources to achieve energy security and to mitigate greenhouse gas emissions which contribute to climate change,” ADB Deputy director general for private sector operations Joe Yamagata said.
A large proportion of the Philippines’ electricity is generated from imported coal and oil, leaving it exposed to price volatility and energy security concerns. At the same time, the reliance on fossil fuels has seen the country’s greenhouse gas emissions rise significantly.
In 2008, the government approved a new energy roadmap in which it set a target of doubling the installed generating capacity from renewable energy to 5,300 megawatts by 2030.
However, the development of renewable energy, such as wind, has been relatively slow because of the high cost of feasibility assessments and of developing and constructing plants.
To date, the Philippines has only one wind power facility - the Northwind Bangui Bay power plant in Northern Luzon.
ADB noted that the potential for harnessing wind remains high as the country of more than 7,100 islands is situated on the fringes of the Asia-Pacific monsoonal belt.
A leading renewable power company, Alternergy Philippine Holdings Corp. (Alternergy), has been granted rights by the Department of Energy to develop wind power facilities in several locations.
If the feasibility studies show that the plants are technically and financially viable, Alternergy plans to build three wind farms with a combined capacity of up to 150 MW.
“We welcome the technical assistance from ADB which will allow Alternergy to assess additional prospective wind sites in Luzon,” Knud Hedeager, Alternegy executive vice president, said.
The ACEF is one of three funds under the Clean Energy Financing Partnership Facility which was established in 2007 to help improve energy security in ADB’s developing member countries, and to decrease the rate of climate change.