Phinma unit inks 10 wind power projects worth $300 million

MANILA, Philippines - Trans-Asia Renewable Energy Corp. (TAREC), the renewable energy unit of the Philippine Investment Management Inc. (Phinma) Group, has signed 10 wind energy service contracts with the Department of Energy (DOE) with total investments of up to $300 million.

TAREC is a wholly-owned affiliate of Trans-Asia Power Generation Corp., Phinma’s power subsidiary. It seeks to participate in the development of the country’s renewable energy resources.

Trans-Asia president Francisco Viray said the contracts will involve the construction of 123 megawatts of wind power projects, mostly located in Luzon. One project, he said, is located in Cebu and another one in Bohol.

Specifically, the company will put up 26 MW capacity in Paracale and Vinzons, Camarines Norte; nine MW in Silang, Cavite; nine MW in Bauan and San Luis Batangas; 19 MW in Calatagan, Batangas; 10 MW in Infanta, Quezon; nine MW in Caluag and Lopez, Quezon; 10 MW in Caluag, Quezon; nine MW in San Joaquin in Iloilo; 10 MW in Dumangas, Iloilo; and 12 MW in Anda and Guindulman, Bohol.

Viray said they would spend about P2.5 million for the pre-development program of each project.

Each project, he said, would take from three to five years to complete.

According to Viray, the company would source the budget for the projects’ pre-development stages from internally-generated funds.

If they decide to push through with the projects, he said they would need to tap financing from various financial institutions or seek a partner.

Viray said they are also confident government would be able to come up with the guidelines for feed-in tariff (FIT) for renewable energy projects.

FIT refers to a renewable energy policy that offers guaranteed payments per kilowatthour to renewable energy developers for the electricity they produce.

Phinma president Ramon del Rosario Jr. said they are trying to increase their exposure in renewable energy sources.

At present, the installed capacity from renewable energy generation in the country is 5,301.6 MW which represents 33 percent of the total installed generating capacity.

It is projected that generation from renewable energy will double by year 2013 with the passage of the renewable energy bill.

The country has more than enough potential to be self-reliant on energy generation through renewable energy because it has a wind power potential of 76,600 MW, geothermal at 1,200 MW, hydropower at over 10,000 MW, while solar has an annual potential average of 5 to 5.1 kilowatthour per square meter per day, biomass at 900 MW equivalent and ocean at 170,000 MW.