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ERC okays 2nd phase of Northwind's wind power project in Ilocos Norte


By Donnabelle L. Gatdula Updated February 01, 2009 12:00 AM

[ philstar.com ]


The Energy Regulatory Commission (ERC) has issued a certificate of compliance (COC) to NorthWind Power Development Corp. (NPDC) for the second phase of its project involving five windpower generating sets in Bangui, Ilocos Norte.


ERC noted that Phase II will contribute 8.25 megawatts (MW) more to the installed capacity of the wind farm project.


NPDC is an independent power producer (IPP) that supplies part of the electricity requirement of Ilocos Norte through distribution utility Ilocos Norte Electric Cooperative Inc. (INEC).


Its power plant is the first commercial capacity on-grid wind turbine farm in the Philippines and Southeast Asia.


It is also the first to be registered with the Executive Board of the United Nations Framework Convention on Climate Change (UNFCC) – Kyoto Protocol.


A COC is a document issued to a generation company (genco) or a self-generating facility (SGF) certifying compliance to the technical and financial standards contained in the ERC’s “Guidelines for the Issuance of Certificate of Compliance for Generation Companies/Facilities, as Amended” .


A genco must have a valid COC in order to sell electricity to a distribution utility (DU), supplier, end-user or the wholesale electricity spot market (WESM).


The ERC issued a COC for Phase I on June 15, 2005 that had a capacity of 24.75 MW.


With the forthcoming operation of Phase II, the wind farm project will now have a aggregate installed capacity of 33 MW.


The wind farm project generated savings of approximately $2.54 million for INEC customers in 2006 and 2007.


The savings were realized since NPDC was embedded in the INEC grid and thus negated the power delivery charges of the National Transmission Corp. (TransCo).


NPDC’s aggregate installed capacity of 33 MW is only 0.33 percent and 0.25 percent of the Luzon grid and the national grid, respectively, which is way below the current limits set by the ERC.


To prevent anti-competitive behavior, the ERC ensures that a genco does not exceed the market share limitations in the grid (set at 30 percent) where it operates and in the national grid, which is set at 25 percent.


The ERC determines the compliance of a genco to the market share limitations by determining the maximum load carrying capability of the facility operated by the genco on a yearly basis.


“The ERC lauds NPDC for investing in eco-friendly renewable energy projects for cheaper electricity service and a clean and green environment. The electricity that NPDC generates will displace green house gas (GHG) emissions such as carbon dioxide (CO2) by approximately 65,000 tons per year. With its compliance to the technical, financial and environmental standards set by law, our Ilocano fellowmen can rest assured that the ERC has carefully reviewed the safety and reliability of the NPDC’s wind farm facilities,” ERC chairperson Zenaida Ducut said.

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