Wind power firms bullish on RP

BANGUI, Ilocos Norte, Philippines — The Wind Energy Development Association of the Philippines (WEDAP) is bullish on the prospects of the country’s wind energy industry.

WEDAP president Niels Jacobsen, who is also president and CEO of Northwind Power Development Corp., said the Philipines could be a major player in wind energy development in Southeast Asia.

“The members of WEDAP are excited not just about their individual wind projects but at the prospects of the Philippines leading the Southeast Asia region in wind power generation through the establishment of a local wind industry,” he said.

“In Southeast Asia, the Philippines leads in wind development hosting the 33 megawatt Northwind project — the country’s first commercial wind power facility that was installed seven years ago in Bangui, Ilocos Norte,” the WEDAP official said.

“The Philippines is fortunate to have good wind sites, as shown by the number of responsible energy service contracts for wind that were recently awarded by the Department of Energy to interested parties.  These contracts, which grant the holders exclusive developmental rights in various locations all over the country, can potentially add 1,000 MW of clean generating capacity, while attracting an estimated $3 billion in direct and indirect investments and 15,100 technical jobs,” he added.

Data from WEDAP also showed that worldwide, the installed capacity of wind power is roughly 160,000 MW.  At its current growth rate, the industry is predicting over 200,000 MW of installed capacity by the end of 2010. By comparison, the total peak power demand of the Philippines is steady at 9,700 MW.

Together, wind turbines generate about two percent of the global electricity demand, which is enough energy to meet the power needs of the whole of Italy — the world’s seventh largest economy.  Globally, the wind power sector also employs about 550,000 people and generated an annual turnover of $70 billion in 2009.

The biggest market for wind turbines in the Asia Pacific region is China, whose annual wind capacity has doubled each year over the last four years. In 2009, it added 13,800 MW.

As the Philippines and other countries struggle to find a sustainable source of clean and competitively priced power, the local potential of wind power cannot be ignored, Jacobsen said.

Each MW of wind power offers carbon-free electricity that is not subject to fuel price escalations. Filipino consumers are all too familiar with the adverse impacts from rising prices of imported energy products, over which the public has little control. Wind farms also foster much-needed rural development because they typically have to be located in more remote areas where the wind blows.

Wind power, if developed to its full potential, has the ability to support a vibrant Philippine wind industry that can deliver additional benefits such as local and foreign investments to develop industries that support the manufacture and installation of wind turbines (e.g. existing ship-building facilities have the capacity to manufacture wind towers).

It will also promote the training of a local workforce that will provide operation and maintenance support for local wind farms. For example, Vestas (the number one turbine manufacturer) has recently based its call center in Manila to support its turbine operations globally.

It is noted that the same technical workforce with expertise in wind can service regional markets as they play catch up with the Philippines in wind power development.

WEDAP currently consists of 14 firms, including Energy Development Corp., Alternergy, Trans Asia Energy and Development Corp., Petro Energy Resources Corp., and UPC Renewables Corp.

Jacobsen noted that there is a need for a stable market for a wind facility’s intermittent power and reasonable rates to compensate for the relatively high upfront investment cost required to build a wind farm.

He said that there is also need to develop adequate transmission lines to access windy but more remote locations. –Donnabelle L. Gatdula (The Philippine Star)