Renewable energy company Alternergy said Tuesday it will proceed with the construction of its second wind project in Rizal province, pending a final endorsement from the Energy Department on the new round of installation target.
Alternergy business development advisor Knud Hedeager told reporters at the Nordic Business Council Philippines Renewable Energy Seminar the company was just waiting for the decision of the department on the new wave of installation target for wind projects, before building the $180-million, 80-megawatt Sembrano wind project in Rizal.
“Right now, we are working hard doing the second part of the Rizal project which is the Sembrano project. It’s an 80-MW project and we hope that as soon as government announces a third feed-in-tariff allocation, then we can put the shovel on the ground,” Hedeager said.
The feed-in tariff under the Renewable Energy Law of 2008 provides for incentives to developers of renewable energy at a fixed per kilowatt-hour rate for a period of 20 years.
The National Renewable Energy Board already proposed a new round of installation target, including 500 MW for wind and 500 MW for solar under the third round of feed-in tariff scheme.
NREB proposed a rate of P6 to P7 per kilowatt-hour for wind, pending the final approval of the Energy Regulatory Commission.
Hedeager said the technology cost per kilowatt-hour for the Sembrano project was around 15 percent lower than the company’s first wind project, the 54-MW wind farm project in Barangay Halayhayin, Pililla, Rizal.
“We have started the tender process for the EPC contractor,” he said, adding the company expected to sign the deal within the month. Construction may take around 18 months.
The Sembrano wind project is estimated to have 25 wind turbines with a capacity of 3.2-MW to 3.4-MW per tower.
“We’re lucky we have a good wind resource in Sembrano,” Hedeager said.
Hedeager said the project would still have the Equis Group, a Singaporean fund manager, as its partner for the Sembrano project.
“We have our equity in place for the Sembrano project. The same partner [Equis] that supported us on the equity of the Pililla project is already signed up for Sembrano,” he said.
He said a third partner might be tapped. He confirmed that the Lucio Tan Group had expressed interest in the Sembrano project.
“It hasn’t been finalized yet but I think LTG announced that they are interested in joining. We don’t mind having local investors. It gives a good balance,” he said.