The Energy Regulatory Commission (ERC) has granted a certificate of compliance to the Burgos Wind Project of the Energy Development Corp (EDC), which will entitle the company to charge a feed-in tariff rate of P8.53 per kilowatt-hour for 20 years.
EDC said in a disclosure to the Philippine Stock Exchange ERC issued the certificate on April 14 for its Burgos Wind Power Project – Phase 1 and 2, which would boost the Luzon Grid with 150 megawatt of clean reliable power and address the power shortage in Luzon and Visayas.
“The certificate of compliance specifies that the project, having a total capacity of 150MW, is entitled to the feed-in tariff rate of P8.53, subject to adjustments as may be approved by the ERC, from 11 November 2014 to 10 November 2034,” EDC said.
The BWP is the largest wind farm in the Philippines with 50 units of the Vestas V90 wind turbine generators (WTG), which have a rated capacity of 3MW each. It could generate 370 Gigawatt-hour every year without the estimated 200,000 tons of carbon emission of a traditional power plant.
ERC granted the project a provisional authority to operate on December 18, 2014 and the Department of Energy gave it a certificate of endorsement for feed-in tariff eligibility. The project is EDC’s first foray into the wind energy business.
EDC invested $450 million in the project, including $315 million financing from international and local banks led by EKF, Denmark’s export credit agency.
Project Finance International (PFI) cited the Burgos Wind Project as Asia Pacific Renewables Deal of the Year for 2014 award for being the first wind farm project financing in the Philippines to reach financial close.
The PFI award is one of the most prestigious awards in the global project finance industry.
It is given to projects that achieved innovative deal structuring and execution for the year.
Besides the PFI award, the Burgos Wind Project has also been recognized as “deal of the year” by three international finance magazines, confirming the international banking community’s vote of confidence for the project.