EDC signs $300M deal for the 87 MW Burgos Wind Project with Vestas of Denmark

Lopez-led Energy Development Corporation (EDC) has signed a deal to commence the construction of its 87-MW wind farm in Burgos, Ilocos Norte and targets to commission the project in 2014.  EDC has selected Vestas of Denmark, the world’s largest wind turbine manufacturer, as supplier of the 29 V90-3.0 MW wind turbines. Both contracts contain certain conditions that must be satisfied or waived, including the issuance of a notice to proceed by EDC and are thus conditional. The total cost of the Burgos Wind Project will be approximately $300 million covering the costs of the wind farm, substation and transmission line.

EDC selected Vestas after an exhaustive tendering process after confirming that Vestas had the technical and commercial abilities to meet the stringent requirements of EDC

EDC chairman and chief executive officer Federico Lopez said “We have long prepared for this project and we are determined to achieve commerciality at the soonest possible time so we can supply the Luzon grid with clean, sustainable wind energy”.

Once operational, the Burgos Wind Project (BWP) is expected to generate approximately 233 GWh annually and power over a million households.  It will augment the Luzon grid’s dependable capacity which needs an additional 4,200 MW in the next ten years due to the projected 4.5 per cent annual increase in electricity demand.

Based on data from the Energy Regulatory Commission (ERC), out of the 12,069 MW total installed capacity from Luzon, 5,923 MW or 49.07 per cent run on imported fuels, wherein 4,172 MW and 1,751 MW are coal and oil fired plants, respectively.

Lopez further added “The project is aligned with the long-term strategic direction of First Gen Corporation (parent company of EDC) to be the country’s leading diversified renewable energy company. It will displace an equivalent of about 129,000 tons of carbon emissions annually and will definitely help mitigate climate change. The project is also congruent with our vision at First Philippine Holdings Corporation (FPH, parent company of First Gen) of “uplifting lives by creating value in key industries and infrastructure that advance national development.

The host local governments and communities, as well as renewable energy advocates have all indicated their support for this project given the economic, social and environmental benefits that will be gained not just by the host province but by the entire country.  The project will generate a significant number of jobs, boost economic activity in the province, and contribute to the national effort to develop clean and green energy resources and reduce dependence on imported oil.

The Burgos Wind Project (BWP) covers approximately 600 hectares across three barangays: Saoit, Poblacion, and Nagsurot.  Aside from the wind farm which will have large scale Vestas V90-3.0 MW wind turbines and ancillary plant, BWP also includes a 115 kV transmission line connecting the wind farm from the Burgos substation to the Laoag substation of the National Grid Corporation of the Philippines (NGCP), as well as the expansion of the switchyard/substations.  EDC has access to funding and has a transmission Interconnection Agreement with NGCP for the project.

EDC will sell the electrical output to be generated by the project under a Feed-in-Tariff (FIT) system pursuant to the Renewable Energy Act of 2008.