TWO wind farms operated by the energy arm of Ayala Corp. are now entitled to incentives given to renewable energy companies which have complied with the requirements for Feed-in-Tariff (FIT) eligibility set by the Energy Regulatory Commission (ERC).
With the issuance of the Certificate of Compliance (FIT COC), the wind farms in Bangui and Caparispisan of AC Energy Holdings Inc. (AC Energy) are now entitled to feed-in tariff of P8.53 per kilowatt hour (kWh) for a period of 20 years.
Implementation of the FIT system is mandated by the Renewable Energy Act of 2008, which encourages the development of renewable energy resources in the country.
As soon as RE producers receive their FIT COC, they are guaranteed payments on a fixed rate per kilowatt-hour for energy exported to the distribution or transmission network.
The FIT will be passed to the electricity consumers at a rate of four centavos per kWh through the feed-in tariff allowance (FIT All), which started to be collected in February.
Under the law, proceeds from FIT All will fund the development of renewable energy sources, including wind, solar, biomass and hydropower projects.
AC Energy’s wind farm expansion in Bangui, under Northwind Power Development Corp. (Northwind), has a capacity of 19 MW, while its wind farm in Caparispisan, Pagudpud under North Luzon Renewable Energy Corp. (North Luzon Renewables) produces 81 MW of clean energy.
The FIT rate covers the period October 10, 2014 to October 9, 2034 for Northwind’s19 MW and November 11, 2014 to November 10, 2034 for North Luzon Renewables’ 81 MW.
In 2014, the Department of Energy (DOE) issued a Certificate of Endorsement for FIT for both wind farm projects after these were commissioned and started commercial operations.
Northwind’s 19-MW expansion was completed last October 2014 and has since been delivering power to the grid. The expansion raised Northwind’s total capacity to 52 MW.
North Luzon Renewables completed its 81-MW wind farm and has likewise been operational since November 2014.
Combined, Northwind and North Luzon Renewables brings to 133 MW Ayala’s total wind power capacity, which is one of the largest in the country today.
AC Energy president and CEO Eric Francia described the completion of these projects as “quite timely” given the anticipated tightness in power supply this year.
“We hope to further expand our renewable energy portfolio and help increase the share of renewables in the country’s energy mix,” said Francia in a statement.
Since 2011, Ayala has committed over $700 million in equity to develop conventional and renewable energy sources.
AC Energy has currently assembled more than 700 MW of attributable capacity, bringing the company closer to achieving its target of assembling over 1,000 MW of attributable capacity from power plants by 2016.