150-MW Burgos Wind Project (BWP) of Lopez-led Energy Development Corporation (EDC) has been named the Asia-Pacific Renewables Deal of the Year by Project Finance International (PFI). BWP is the only project in the Philippines that made it to the 2014 PFI honour roll.The
The PFI awards, which will take place on February 4, 2015 in London, United Kingdom, is widely considered to be the most prestigious award in the global project finance industry given to projects that achieved innovative deal structuring and execution for the year.
In the PFI newsletter, BWP was cited as a ground breaking project for being the first wind farm project financing in the Philippines to reach financial close. It also noted that EDC achieved financial close despite the absence of an off-take agreement. In the PFI article on BWP, the authors noted that “Financing for the project is a significant achievement by EDC’s project and finance teams, and that developers and banks will welcome this sign of confidence in the Philippines’ renewable sector and its Feed-In-Tariff (FIT) scheme.”
“We are honored by the recognition given by the international finance community. This is a resounding vote of confidence for EDC’s execution capability and a validation of the country’s sound energy policies that generate investments for the Philippines. We believe that this will encourage more financial support to boost much needed renewable energy development in the country,” EDC President and Chief Operating Officer Richard Tantoco said.
BWP achieved successful commissioning on November 5, 2014 following its nomination by the Department of Energy (DOE) for FIT eligibility. Both Phase 1 and Phase 2 of the project, totaling 150 MW have been endorsed by the DOE to qualify for the FIT on November 11, 2014. On December 18, 2014, the Energy Regulatory Commission (ERC) issued the Provisional Authority to Operate to BWP.
The project is EDC’s first foray into the wind energy business. It represents the company’s single largest investment to date. EDC has invested US$450 million in BWP including the US$315 million in project financing with leading international and local banks led by EKF, Denmark’s export credit agency. It will provide 370 GWh of electricity to power approximately 2 million households and the project will displace about 200,000 tons of carbon emissions annually.
At 150 MW, the BWP is the largest wind farm in the Philippines. It used 50 units of the Vestas V90-3.0MW wind turbines and ancillary plant constructed by Vestas, the world’s leading wind turbine manufacturer. Aside from the wind farm, the project 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. (Story by Toni Nieva)