Monday, May 20, 2013

Press release: “EDC’s Burgos Wind Project secures DOE Certification for Commerciality”

Energy Development Corporation
38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue
Ortigas Center, Pasig 1605, Philippines
Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)
May 17, 2013
JANET A. ENCARNACION
HEAD, Disclosures Department
The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
Dear Ms. Encarnacion:
Pursuant to the PSE's disclosure requirements, we advise the Exchange that we received the Certificate of Confirmation of Commerciality WCC-2013-04-001 dated May 16,
2013, issued by the Department of Energy (DOE) in favor the Burgos Wind Project of EDC Burgos Wind Power Corporation (EBWPC). The DOE certificate confirms the Declaration of Commerciality of EDC Burgos Wind Power Corporation to develop, operate, and maintain a feasible and viable 87 MW Wind Power Project under Wind Energy Service Contract No. 2009-09-004.
The foregoing declaration was issued in accordance with Section 6 of DOE Circular
DC 2009-07-0011.
Also on the Burgos Project, we submit the attached disclosure entitled "EDC's Burgos WindProject secures DOE certification for commerciality."
Energy Development Corporation
38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue
Ortigas Center, Pasig 1605, Philippines
Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)Press Release May 17, 2013 EDC's Burgos Wind Project secures DOE Certification for Commerciality
Energy Development Corporation (EDC) has been granted the Certificate of Confirmation of Commerciality by the Department of Energy (DOE) for its 87-MW Burgos Wind Project (BWP) in Ilocos Norte. The Certificate of Confirmation WCC-2013-
04-001, which is the first to be issued by the DOE for a wind project in accordance with Section 6 of DOE Circular DC 2009-07-0011, confirms the Declaration of Commerciality for EDC Burgos Wind Power Corporation (EBWPC) to develop, construct, operate and maintain the wind power project. The certification converts BWP's Wind Energy Service Contract No. 2009-09-004 from exploration/pre-development stage to the development/commercial stage.
"This milestone affirms our efforts to pursue and fast track the project in order to be the first to achieve commercial operations by 2014. Our recently closed US$80M club loan plus Php7B we raised brings our total cash to Php19B. We have, without a doubt, a fully funded business plan," EDC President and COO Richard B. Tantoco said.
The $300M Burgos Wind Project, EDC's first foray into the wind energy business, will be one of the largest investments to date in the Province of Ilocos Norte. EDC broke ground for the project last April 19 after signing an EPC contract with Vestas, the world's leading wind turbine manufacturer, on March 1. The Burgos Wind Project will utilize the proven Vestas V90-3.0 MW wind turbines.
"We have the distinction of having over seven years of accurate wind data so we are absolutely certain of our site and the wind resource. Because of this, we are rapidly taking all necessary steps to increase the capacity of the Burgos Wind Project from 87MW to 150MW," Tantoco added.
BWP will be the largest wind farm in the Philippines. Aside from the wind farm, the BWP is also comprised of a 115 kV transmission line that will connect the wind farm to the Laoag substation of the National Grid Corporation of the Philippines (NGCP) and of a substation and interconnection works package.
BWP is expected to generate approximately 233 GWh annually, enough to supply the energy demand for over a million households. It will augment the Luzon grid's dependable capacity which needs an additional 4,200 MW in the next ten years. It will also displace 129,000 tons of carbon emissions that will mitigate the effects of climate change.