PNOC-EDC pushes wind power project in Ilocos Norte
Monday, November 06, 2006
By MYRNA M. VELASCO
State-owned Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) is proceeding with the construction of its planned wind power project in Ilocos Norte, but takes on compromise that the capacity be slashed to 20 megawatts, just half of the originally proposed 40 MW.
"The construction will move along after going through all the necessary processes of approvals, but we have to settle on its capacity getting reduced because it has implication on project cost," said PNOC-EDC president Paul A. Aquino.
It was proffered that the first round of bidding for the turnkey contract be nullified and that the company be allowed to send another tender notice to interested parties.
The energy firm has anchored its final decision on various options, including a proposal to sustain its capacity but confront a higher project cost that may climb up to 0 million or to totally scrap the project.
The project went through re-evaluation process by project funder Japan Bank for International Cooperation (JBIC) after cost of materials and steels surged, affecting original loan allocation.
It then advised PNOC-EDC to determine its options, whether to apply for higher loan or stick to the original amount but reduce the plant’s capacity.
The company first looked at a capacity reduction of 30 MW, but under more stringent conditions, officials noted that this can still be trimmed down to 20 MW.
JBIC previously approved million loan for the Ilocos wind project, and this already lumped in transmission costs.
Given the government’s intensifying invitation for construction of new capacity to meet future demand and also to align with the thrust on development of renewable energy sources, PNOC-EDC noted this served as its driving force to move ahead with the wind facility’s implementation.
Should revised timeframe gets ahead smoothly, it is expected that the wind facility will start supplying electricity by end of next year.
The state-run firm set on blueprint a threephased wind power facility with 40 MW capacity for each batch, but Aquino said this shall be reviewed as they move along with the implementation of the first phase.
For the initial phase, the project design prescribes the construction of a 42-kilometer transmission line connecting the facility to Transco’s substation in Laoag.
This shall go along with the installation of a switchyard at Burgos and the interconnection works at the Laoag substation to accommodate the power facility’s output.
posted by philpower @ 11:09 AM,
