PetroEnergy signs ‘FIT payment deal’ on 36-megawatt wind project

by Myrna Velasco – December 28, 2015

from Manila Bulletin

A payment arrangement has already been signed for the feed-in-tariff (FIT) availment of the 36-megawatt Nabas wind power project of PetroWind Energy, Inc, the operator of which is a subsidiary of listed firm PetroEnergy Resources Corporation.

The project vehicle’s parent firm has noted in its disclosure to the Philippine Stock Exchange (PSE) that the Renewable Energy Payment Agreement (REPA) with FIT administrator National Transmission Corporation (TransCo) already took effect December 22, 2015.

This is the first phase of the planned two-tiered wind power development of PetroWind Energy in Nabas, Aklan for a targeted aggregate capacity of 50MW. The second phase will be for 14MW.

“With this development, PetroWind’s Nabas-1 wind power plant will receive off-take payment of the ERC-approved FIT of P7.40 per kilowatt hour starting next billing period,” the company said.

The Energy Regulatory Commission (ERC) approved the second wave of FIT incentive for wind developments around third quarter this year – and such covered the projects which had not been included in the initial FIT of P8.53 per kwh.

The reckoned commercial operation date of the Nabas wind plant was June 10, 2015 – based also on the stamped endorsement of the Department of Energy.

Since the second FIT charge was still under approval then, PetroWind Energy has been exporting its generated capacity to the Visayas grid and was being paid based on settlement prices at the Wholesale Electricity Spot Market.

But since the spot market rates had been lower on those periods, the company noted that it “expects to receive incremental refunds.”

The FIT certificate of compliance (FIT-COC) of the Nabas wind farm was dated December 1, 2015 and such guarantees its FIT settlements from June 10, 2015 to June 9, 2035.

PetroWind Energy invested P4.5 billion for the facility. PetroEnergy’s partners in the venture are Singapore-based CapAsia Asean Wind Holdings Cooperatief; and EEI Power Corporation.