The recently-formed Wind Energy Development Association of the Philippines (WEDAP) is hopeful that the country can fulfill its potential to generate 1,000 megawatts of power and $3 billion in new investments will finally be unlocked by favorable government policies.

WEDAP president and Northwind Power Development Corporation chief executive Niels Jacobsen said the Association and its members are excited not just about their individual wind projects but at the prospect of the Philippines leading the Southeast Asia (SEA) region in wind power generation through the establishment of a local wind industry.

However, WEDAP noted that there are two main barriers facing wind energy developers and the first is the need to develop adequate transmission lines to access windy but more remote locations.

There is also a need for a stable market for a wind facility’s intermittent power as well as reasonable rates to compensate for the relatively high upfront investment cost required to build a wind farm.

The Renewable Energy Law of 2008, in particular, the Feed-in Tariff (FIT) scheme mandated by this law recognizes the unfair advantage being enjoyed by fossil-fuel based power generators due to the non-pricing of their adverse environmental impacts (e.g. climate change, local pollution).

The FIT seeks to “level the playing field” by providing revenue support for emerging technologies that are renewable and environment-friendly. But, regulators have yet to come out with the tariff scheme for renewable energy sources.

Meanwhile, with the transmission company (National Grid Corporation of the Philippines) now under private control, “WEDAP also looks forward to greater support from NGCP in building the much needed transmission lines required by remote wind sites as mandated in the Renewable Energy Law,” Jacobsen said.

The Philippines currently has only the 33 MW Northwind project - the country’s first commercial wind power facility that was installed seven years ago in Bangui, Ilocos Norte.

However, it has good wind sites, as shown by the number of RE 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 US$3 billion in direct and indirect investments.

Among the members of WEDAP are Energy Development Corporation, Alternergy, Trans Asia, Petro Energy, UPC Renewables. WEDAP’s main function is to promote and support the development of wind power as a viable energy resource, particularly in this period of policy formulation under the Renewable Energy Act.