EDC to spend $33 m on geothermal in 2012
Philippine Energy Development Corp. (EDC) plans to spend $33 million this year for the rehabilitation of the Bacon-Manito geothermal plant, the purchase of brand new rigs and transfer to the Northern Negros geothermal plant to the Nasula site at the Palinpinon complex.
Reported from the Philippines, Energy Development Corp. (EDC) is ” looking at a complete capital expenditure of about P20 billion ($47 m) company-wide. A big chunk of that capex, P6 billion ($14 m) of that P20 billion, is the [Burgos] wind project. If the feed-in tariff is postponed and delayed and Burgos is moved to next year, that will not be spent,” said EDC President Richard B. Tantoco in a press briefing after the firm’s annual stockholders’ meeting yesterday.
The rest of the budget (or $33 million) will be used for the rehabilitation of the Bacon-Manito geothermal plant, the purchase of brand new rigs and transfer of the Northern Negros geothermal plant to the Nasulo site in the Palinpinon geothermal complex, he said.
The 86-megawatt (MW) Burgos wind project in Ilocos Norte will sell its output depending on the feed-in tariff the government will approve for such renewable energy project.
The company said it will no longer borrow for its capex.
Meanwhile, the transfer of the shuttered Northern Negros geothermal facilities is expected to increase the company’s revenues as it will increase the capacity of the Nasulo site.
“We have two adjacent wells in Nasulo that are over 45-MW but [with an installed capacity of] only 20 MW. So with the move of Northern Negros, [there will be] additional capacity,” Mr. Tantoco said.
“Typically, when you look at geothermal power, one megawatt delivers about P40 million to P45 million per year, so the new capacity will mean almost P1 billion new revenues,” he added.
There is no timeline yet for the transfer of Northern Negros but Mr. Tantoco said the firm will be bidding out a contract by June.
After the Northern Negros plant is moved, EDC will build a much smaller plant in the area. It will have a capacity of 5 MW to 10 MW.
In a separate development, system operator National Grid Corporation of the Philippines yesterday said it will expand its the South Luzon Naga substation.
The P355-million project will increase the operational capacity of the substation via a new 100-megavolt ampere transformer.
The project is expected to be completed by the third quarter of the year.”
Source: Business World Online