ERC ALLOWS NORTHWIND TO OPERATE 5 MORE WIND-POWER UNITS IN ILOCOS
The Energy Regulatory Commission (ERC) approved the issuance of a Certificate of Compliance (COC) to NorthWind Power Development Corporation (NPDC) on 26 January 2009 for Phase II of its project involving five (5) wind power generating sets in Bangui, Ilocos Norte. Phase II will contribute 8.25 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 the 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 generating company (“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).
It can be recalled that the ERC, on June 15, 2005, issued a COC for Phase I 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 a savings of approximately US$2.54 million for the consumers of the (INEC) in 2006 and 2007. The savings happened since NPDC was embedded in the INEC grid and thus negated the power delivery charges of the National Transmission Corporation (TRANSCO).
NPDC’s aggregate installed capacity of 33 MW is only 0.33% and 0.25% 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 must ensure that a generating company (“GenCo”) does not exceed the market share limitations in the grid (set at 30%) where it operates and in the national grid (set at 25%) . The ERC determines the compliance of a GenCo to the market share limitations by determining the maximum load carrying capability (“aggregate installed capacity”) 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 G. Cruz-Ducut concluded.
January 30, 2009