Alternergy may invest $400 million in wind energy

MANILA, Philippines - Alternergy Philippine Holdings Corp., a renewable power company founded by former Energy Secretary Vincent Perez, is looking at the possibility of investing about $400 million for wind power projects in the near term.

The company said it is planning to build at least 200 megawatts (MW) of wind power over the next three years with its Korean and Japanese partners.

As a rule of thumb, a one MW wind power project will need at least $2 million in investment.

The company has been awarded six service contracts by the Energy Department for its wind projects in Sta. Ana and Ballesteros in Cagayan, Pagudpud in Ilocos Norte, Pililla in Rizal, Kalayaan in Laguna and Abra de Ilog in Mindoro.

Late last year, Alternergy formed a joint venture with Eurus Energy Japan Corp. and Korea East West Power Co. (EWP).

Under this agreement, Eurus Energy and EWP will develop renewable power projects in the Philippines. 

EWP president Lee Gil Gu earlier expressed optimism in investing in the Philippines given the huge resource potential and attractive incentives for renewable energy investors.

EWP, one of the spin-off power generating subsidiaries of Korea Electric Power Corp. (Kepco), owns six power plants in Korea with 9,500 MW in total generating capacity. The company is diversifying its fuel portfolio to include renewable power both in Korea and overseas.

Eurus Energy is the wholly-owned subsidiary of Tokyo-based Eurus Energy Holdings Corp. which is owned by Tokyo Electric Power Co., Inc. and Toyota Tsusho Corp.

Eurus Energy Holdings develops, owns and operates renewable energy facilities, including both wind and solar, with a total capacity of 1,827 MW worldwide.

Alternergy currently has a stake in the 40-MW Aparri wind project being developed by NorthWind Power Development Corp. in Cagayan.

NorthWind is also the owner and operator of the 33-MW Bangui Bay wind project in Ilocos Norte.