2 Canadian firms eye wind power project in RP

Two Canadian companies are eyeing the development of at least 115 megawatts (MW) of wind power in the Philippines, an energy official said.

Department of Energy (DOE) director for Energy Utilization Management Bureau Mario Marasigan said Logics Energy Inc., a Canada-based financing company, has formed a joint venture with Transnational Diversified Corp. to mobilize funds to put up a 100-MW wind power project.

The group is eyeing three key areas identified by the DOE as potential sources of wind power. These are Ilocos, Zambales and Cavite.

Based on DOE estimates, some $2.5 million would be needed to develop one MW of wind power.

Another firm that has expressed keen interest in wind power development is Canadian power firm Applied Energy Corp. (AEC), Marasigan added.

He said AEC is currently in its initial reckoning assessment phase for the possibility of putting up at least 15 to 20 MW of wind power.

AEC is currently arranging for its licensing requirement after which it will start negotiations with the DOE.

Marasigan said both companies are willing to participate in the second wind contracting round (WCR) next month.

The DOE has identified at least 16 new potential sites for the second WCR, on top of the 15 sites already covered under the first WCR.

These include: Carmen and Oslob in Cebu; Bago City and Cauayan in Negros Occidental; Allen-Lavesares and Calbayog City in Northern Samar; Siquijor; Pasuquin, Ilocos Norte; Bantay, Ilocos Sur; Bani and Bolinao in Pangasinan; Maconacon, Isabela; Tagaytay, Cavite; San Andres, Quezon; and Mercedes and Daet in Camarines Norte.

Energy Secretary Raphael P.M. Lotilla said they are ready to provide incentives for these kinds of projects.

"For the DOE, we are providing investment incentives under the investment priority plan. For example, for equipment brought in, it will be considered as pioneering and will have zero tariff since these projects have high upfront cost depending on the size or magnitude," Lotilla said.

"There is a need for the wind farm to be geographically scattered so that at any time during the day there is constant power coming from the windmills. The New and Renewable Energy Bill just need one executive meeting, approval is expected early next year," the energy chief said.