Bangui Bay Wind Power Project

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In April of 2004, Northwind Power Development Corp. (Northwind began construction of a 25-MW wind power project in Bangui Bay, Ilocos Norte, paving the way for the Philippines to become the first producer of wind power in Southeast Asia. Northwind was to invest over P2 billion (US$38 million) for the project, which was expected to be finished by the end of 2004. The project was part of the federal government's plan to increase the harnessing of wind power for electrification of off-grid rural areas. Dutch firm Vestas Wind Systems provided the wind turbines which were to harvest the breezes from the South China Sea using 15 giant wind turbines, each standing 70 meters tall with rotor blades spanning 40 meters. The government leased the four-kilometer (2.5-mile) stretch of shoreline on which the turbines were installed to Northwind for a 25-year period, which was renewable for an additional 25 years. Northwind was a consortium of Filipino investors (60%) and Niels Jacobsen of Denmark (40%). Northwind was to sell power generated from the project to Ilocos Electric Cooperative (Ineco) under a 20-year PPA. This first phase of the wind farm project was funded by the Danish International Development Agency (Danida) in March of 2004, through a US$29 million subsidized loan payable in 10 years. Northwind provided an additional US$9 million through foreign bank ABN Amro and the Philippine Export-Import Credit Agency provided the guarantee. In October 2007, Northwind tapped Danida for an additional loan of US$13 million to fund a second phase expansion of the facility. The expansion, which added 5 wind turbines and an additional 8 MW in generation capacity, was commissioned in September 2008. In February 2011, the Philippines' Ayala Corporation acquired a 50% stake in Northwind Power, through its 100%-owned subsidiary Michigan Power. With the initiation of FiT in Philippines, Bangui was the first plant to benefit after years of issues regarding tariff. Northwind received P9.30 per kWh.