ACEN’s wind farm projects will cost P17 billion
8 July 2022
In wind projects that won contracts in the government’s first round of the Green Energy Auction Program, ACEN Corp. aims to invest over P17 billion (GEAP).
In a press conference, ACEN President and CEO Eric Francia said the P17 billion capital budget would be split between the two wind power projects in Ilocos Norte: the 160-MW Balaoi and Caunayan Wind Power Project and the 70-MW Caparispisan II Wind Power Project.
We will provide project financing for wind farm projects , he stated.
Amihan Renewable Energy Corp., which is 80 percent controlled by ACEN, is the company in charge of the 70 MW Caparispisan II Wind Power Project.
On the other hand, the 160-MW Balaoi and Caunayan Wind Power Project is being worked on by Bayog Wind Power Corp., a fully owned subsidiary of ACEN.
The Department of Energy (DOE) issued 19 contracts in the first phase of GEAP, where it auctioned off 2,000 MW of renewable energy (RE) capacity late last month. Both projects are among them.
Two of the four wind contracts granted in Luzon are for wind projects by ACEN.
According to Francia, Bayog Wind Power started building on its wind farm projects last year and plans to finish it the following.
Construction on the 70 MW wind farm will begin this year and be finished in 2024, he said.
Because the FIT for GEAP is for 2025, both projects are completed well before the deadline. These are the two initiatives that, in our opinion, will be finished by 2025, Francia stated.
The two initiatives are Ilocos Norte’s third and fourth wind developments, respectively.
The 52 MW NorthWind wind farm in Bangui and the 81 MW North Luzon Renewables wind farm are the first two initiatives.
Francia stated that ACEN would continue to take part in the government’s GEAP, which according to the DOE will be carried out annually.
With our other projects, “We’ll be interested in taking part in future GEAP,” he declared.
Through the GEAP, the DOE opened the door for quick and timely investments, supported the creation of and increased access to financing for new or additional capacities through a competitive process, and implemented initiatives that support environmental sustainability, which will aid the nation’s transition to RE.
Since the GEAP is believed to be the catalyst for the increase of RE capacity in the nation, helping the government achieve its goals for the energy transition, the program will also provide substantial support to the mandated participants of the Renewable Portfolio Standards (RPS) Program to ensure compliance with their minimum RPS requirements.
The RE Act of 2008 established the RPS, which requires retail power suppliers, electric cooperatives, and distribution utilities to source a certain proportion of their electricity needs from renewable sources.
At this time, the RPS level is set at 1%.
