THE Burgos Wind Project (BWP), considered the largest wind power project in the country and in Southeast Asia, has been named the Asia-Pacific Renewables Deal of the Year by Project Finance International (PFI).
The 150-megawatt (MW) Burgos wind farm is a project of Lopez-led Energy Development Corp. and is the only project in the Philippines that made it to the 2014 PFI honor roll.
The awarding will take place on February 4, 2015 in London, United Kingdom.
The PFI awards are widely considered to be the most prestigious award in the global project finance industry and are given to projects that have achieved innovative deal structuring and execution for the year.
In the PFI newsletter, BWP was cited as a groundbreaking project for being the first wind farm project financing in the Philippines to reach financial close. It also noted that EDC achieved financial close despite the absence of an off-take agreement.
“Financing for the project is a significant achievement by EDC’s project and finance teams, and that developers and banks will welcome this sign of confidence in the Philippines’ renewable sector and its Feed-In-Tariff (FIT) scheme,” PFI said about BWP.
EDC President and Chief Operating Officer Richard Tantoco said they are honored by the recognition given by the international finance community.
“This is a resounding vote of confidence for EDC’s execution capability and a validation of the country’s sound energy policies that generate investments for the Philippines,” he said.
He also expressed belief that the recognition will encourage more financial support to boost much needed renewable energy development in the country.
BWP achieved successful commissioning on November 5, 2014 following its nomination by the Department of Energy (DOE) for FIT eligibility.
Both Phase 1 and Phase 2 of the project, totaling 150 MW, were endorsed by the DOE to qualify for the FIT scheme on November 11, 2014.
On December 18, 2014, the Energy Regulatory Commission (ERC) issued a Provisional Authority to Operate to BWP.
The Burgos project is EDC’s first venture into the wind energy industry and represents the company’s single largest investment to date.
EDC invested $450 million in BWP, including $315 million in project financing with leading international and local banks led by EKF, Denmark’s export credit agency.
It will provide 370 GWh of electricity to power approximately two million households and is expected to displace about 200,000 tons of carbon emissions annually.
At 150 MW, the BWP is the largest wind farm in the Philippines.
It uses 50 units of the Vestas V90-3.0 MW wind turbines and ancillary plant constructed by Vestas, the world’s leading wind turbine manufacturer.
Besides the wind farm, the project also includes a 115 kV transmission line connecting the wind farm from the Burgos substation to the Laoag substation of the National Grid Corp. of the Philippines and an expansion of the switchyard/substations.