Northwind awaits government decision on tariff

BANGUI, Ilocos Norte, Philippines — Northpoint Wind Power Corp., a subsidiary of Northwind Power Development Corp., is awaiting the decision of the government on the feed-in tariff (FIT) before pushing through with its 40-megawatt (MW) wind farm project in Aparri, Cagayan.

Northwind business development manager Giovanni Macapobre told reporters in a briefing here that they may push back the project next year or as soon as the FIT has been firmed up by the government.

FIT is a fixed rate structure to be given to developers of renewable energy sources at a certain period of time.

Northpoint is expected to spend around $95 million for the Aparri wind project. The project consists of about 20 to 25 wind turbines that will provide power to electric cooperatives in Cagayan.

Most of the developers of renewable energy want an assurance that they would get a reasonable return of their investment at least through this so-called FIT.

Northpoint’s Aparri wind farm is being proposed to be placed along the shoreline in Brgy. Dodan, Aparri, a second class municipality in the province of Cagayan.

At present, the Energy Regulatory Commission is currently reviewing the comments of the National Renewable Energy Board on the feed-in tariff rules. 

If approved, the NREB will come up with the tariff list for submission and approval of the regulator.

NorthWind president and CEO Niels Jacobsen had said they hope to construct the project next year.

Jacobsen said they are waiting for the “last pieces of the law to be put in place like the feed-in tariff, renewable energy portfolio standards, and how it is actually going to work.”

The Northwind official said they are also in talks with various funding institutions to finance the project.

The wind farm project of Northwind has received support from Japanese, Danish and Spanish investors and creditors.

He said they expect to sign supply contracts with the electric cooperatives in Cagayan for the produce of the wind farm.

NorthWind operates the the 33-MW Bangui Bay wind project in Ilocos Norte, the largest wind farm in Southeast Asia.

The Bangui Bay wind farm project, estimated to cost $50 million, currently sells electricity to the Ilocos Norte Electric Cooperative and provides 40 percent of the power requirements of the province of Ilocos Norte.