Wind Energy Project In Abra De Ilog Put Into Hold

Norway-Wind-Energy-Farm
Photo source: inhabitat.com

On October 23, 2009,  Alternergy Partners Corporation has been awarded with six exclusive Wind Energy Service Contracts by the Department of Energy based on its financial and technical capabilities.

One of which is the “Abra de Ilog, Mindoro” Wind Energy Service Contract which covers an area of 18,711 hectares. The Project is estimated to generate approximately 40 MW capacity (source: alternergy.com).

However, in June 2015, it was put into hold due to excess in supply.

Energy director Mario Marasigan confirmed that some projects, including the Abra de Ilog wind project led by former energy secretary Vince Perez, were covered by a moratorium.

“The lifting of the moratorium will be based not only on the availability of the electricity market in Mindoro but also on the economics of the project… By the time there is electricity market, what will be the economics of the project?” Marasigan asked.

Marasigan said a feed-in tariff rate would not be viable in Mindoro.

He said the electric cooperatives of Mindoro were in a better position to determine the availability of the electricity market in Mindoro that would make projects more viable (source: thestandard.com).

Background 

Description

The government approved the Renewable Energy Act in 2008 (RE Act 2008), which aimed to accelerate the development of renewable energy (RE) resources in the country by increasing RE-based installed capacity from the 2010 level of 5,438 MW to about 15,304 MW by 2030. Of this target capacity addition, 2,345 MW was allocated to wind technology.

A wind mapping study conducted by the US National Renewable Energy Laboratory in 1999 shows over 10,000 square kms. of windy land area exist with a combined capacity of about 70,000 MW. However, RE development, such as wind, has been relatively slow because of the high cost of feasibility assessments and of developing and constructing plants. As of 2010, the Philippines only had one wind power plant, the Northwind Bangui Bay Power Plant, in the northern part of the country with a capacity of 33 MW.

In December 2008, Alternergy Philippine Holdings Corporation (APHC) was awarded by the Department of Energy (DOE) the exclusive right to develop wind power projects in 3 locations: Pililla in Rizal, Abra de Ilog in Occidental Mindoro, and Kalayaan in Laguna. These locations were among those identified under the Philippine Wind Atlas as potential sites for wind farms due to good to excellent wind resources. APHC was subsequently awarded additional wind energy service contracts in 3 other locations in 2009. APHC is committed to implement the wind projects if the wind measurements and site specific studies demonstrate that the power plants are commercially viable.

APHC, a renewable power company which develops wind power projects, is headed by former Energy Secretary Vincent Perez. In September 2009, APHC entered into a joint venture with Eurus Energy Japan Corp. and Korea East West Power Co. (EWP). Eurus Energy is a subsidiary of Eurus Energy Holdings Corp. of Japan which is in turn owned by Tokyo Electric Power Co., Inc. (TEPCO) and Toyota Tsusho Corp, while EWP is a subsidiary of Korea Electric Power Corp. (Kepco). It should be noted though that Eurus Energy has since withdrawn from the project because of TEPCO’s problems in Japan as a result of the tsunami in 2011. A private equity fund specializing in renewable energy has stepped in.

The TA was provided to APHC, the Executing Agency (EA), to finance the first phase of the preparatory work for the construction of the 3 potential wind farm projects in Luzon. The TA would produce site-specific feasibility studies for each of the proposed locations to determine the viability for commercial operations of a wind power project (source: adb.org).

Read more of the description here.

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