RP-Dutch group eyes phase 2 of $120-M wind farm project

A Filipino-Dutch consortium has indicated plans to take part in the government’s $120-million wind farm project, a Department of Energy (DOE) official said.

Francisco A. Benito, officer-in-charge of the DOE’s Energy Utilization Management Bureau, said the Northwind Corp. intends to undertake the second phase of the wind power project amounting to $42 to $60 million.

Benito said the Filipino proponent of Northwind informed the DOE recently that it has a tie-up with a Dutch company which manufactures wind turbines.

"They want to take the second phase of the wind project, directly beside the Philippine National Oil Co-Energy Development Corp. (PNOC-EDC)," Benito said, adding that the DOE is still looking for a prospective investor for the third phase of the project.

The first phase amounting to $42 million to $60 million will be undertaken by PNOC-EDC.

A wind turbine converts the energy in the wind into electrical energy or mechanical energy to pump water or grind grain. The wind potential of the Philippines is estimated to reach as high as 70,000 MW.

The project, however, has been on hold due to financing problems. PNOC-EDC is still awaiting approval from the Japan Bank for International Cooperation (JBIC) for the proposed $60-million financing package for the project.

But, Energy Secretary Jose Isidro Camacho said they expect to finalize the first wind project by next year. "PNOC-EDC is scheduled to operate the country’s first commercial wind farm in Ilocos Norte by next year, supplying 42 MW of power to the Luzon grid," Camacho said.

Benito said PNOC-EDC and Northwind are exploring talks on possible sharing of their transmission lines. "They find it cost effective, ideal and beneficial to share transmission lines," he said.

The two power firms, he said, are planning to sell their generated capacity to different entities. "PNOC-EDC is eyeing to sell to National Power Corp. while Northwind will apparently sell to electric cooperatives in Ilocos," he said.

The power to be generated from the wind farm project could be sold at P1,800 to P2,000 per kilowatt installed. Benito said this pricing could compete closely with geothermal power which is selling at P1,500 to P2,000 per KW. – Donnabelle Gatdula