Ayala wind power proj gets provisional FIT

MANILA, Philippines - The Energy Regulatory Commission (ERC) has extended the provisional feed-in tariff (FIT) rates for a wind power project of Ayala-led firm Northwind Power Development Corp.

The move assures Northwind of a fixed return should the FIT scheme be implemented.

“Considering that the FIT for the emerging renewable energy technologies, specifically for wind energy, has not yet been finally approved, the Commission hereby extends the provisionally approved FIT of P9.30 per kilowatthour (kwh) granted for Northwind,” ERC said.

ERC said the extension started on June 5 and will be in effect until revoked.

Last year, conglomerate Ayala Corp., through subsidiary Michigan Power Inc., acquired a 50 percent stake in NorthWind.

Northwind owns and operates the 33-megawatt wind farm in Bangui Bay in Ilocos Norte, which sells electricity to the Ilocos Norte Electric Cooperative.

The $50-million project, the first commercial wind farm in Southeast Asia, is the only major wind power generation project in the Philippines.

The ERC said the provisional FIT will only be effective and collected upon the final approval of the FIT for green projects.

The FIT scheme, whose implementation is already delayed by almost three years, guarantees investments of renewable energy firms through fixed rates that would be shouldered by consumers over a set period of time.

Proposed FIT rates are P7 per kwh for biomass, P17.65 per kwh for ocean technology, P17.95 per kwh for solar power, P6.15 per kwh for run-of-river hydropower and P10.37 per kwh for wind power. The rates are estimated to add roughly P0.12 per kwh to consumers’ electricity bills.

In April last year, Northwind filed an application for the adoption of the FIT for its wind farm. Northwind secured a one-year, provisional approval in June last year.