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Windmill Farm: A Big Opportunity for Sagada and Besao Locals

In some countries across Europe and America, wind energy remains to be a miracle fueling homes and livelihood centers. Scientists and environmentalists recommend wind energy because it is free, safe, environmental-friendly and literally renewable.



Among the Department of Energy-identified places that have good wind output is the Pilao-Langsayan Ridge on the boundary of Sagada and Besao, Mountain Province. Even when Besao native Engr. Rufino Bomas-ang was a high school student at Saint Mary’s School in Sagada, he was aware of this fact.

During the meeting with folks in Sagada on March 2, 2013, Bomas-ang narrated how he walked along the windy ridge as a teenager traveling on foot just to get an education from the Anglican school.

People in Sagada are familiar with the rags-to-riches story of the former DOE undersecretary. In fact, his story has been inspiring hundreds of students from remote areas coming to the Sagada to study.

Before going to Sagada, Bomas-ang attended the Ubaya Festival in his hometown. He was the guest speaker. He also spearheaded a raffle draw for winners of his self-initiated fund raising event for the construction of a St. James High School building.

Bomas-ang then proceeded to the Besao Cooperative Multi-purpose Hall for the public consultation. In his Kankanaey vernacular, he explained to the locals the concept of the windmill project. Locals asked questions- and he answered them all.

Then came my turn.

I was excited to meet him- he knew that. I told him he was a “star” but did not understand my language. So I found a synonym which he recognized immediately- CELEBRITY.

I also told him about the wind energy issue that rose when I was in grade school. I do not know if he was surprised with my testimony. He further explained that it was not just PhilCarbon that is interested in investing in Sagada. He gave me his autobiography to read. That’s my prize!

To know more about this big opportunity, here are links that may deliver us updates regarding the issue. As long as we keep our minds open and screen information being circulated in town, we will better understand the proposed windmill farm.







A Marketing Communications specialist on weekdays and a life wanderer on weekends, Christian Lizardo Aligo enjoys working in the real estate industry. For more info, email him at [email protected]

2 Comments:

Anonymous said...

Hi Christian. I must have struck a nerve, or at least be onto the truth for you to delete my comment. I still think the math needs improvement. Maybe you can help me find out how many kW/h are projected to be generated for this project!

Is your strategy to delete comments you don't agree with, or are you being paid by one of these renewable energy companies to provide some rudimentary social brand management?
---

Guess what? Philcarbon was kind enough to provide how many kW/h are estimated to be generated per year: 32,196,000.00

That number blows my previous revenue estimates out of the water. Let's do some more math. You may delete the comment, but I save them.

If we add the FIT rate per KW/h generated, the current rate being 8.53 PHP per KW/h generated, the company stands to make this base revenue per year:
(source: http://wwf.org.ph/wwf3/climate/article/62)

32,196,000 KW/h x 8.53 Php = 274,631,880.00 Php per year, tax free.

That is just the FIT incentive. I will now add in the revenue the company will make, per year, in the "Generation & Transmission" charges section that can be found on the latest MOPRECO electric bill.

Generation Charge: 4.25 Php per KW/h
Transmission Delivery Charge: 1.20 Php per KW/h
System Loss: 0.75 Php per KW/h
---
Total: 6.20 Php Per KW/h, tax free.

Using that number (6.20) of generation & transmission, it stands to reason that the company will make the following yearly revenue on top of the FIT revenue:

32,196,000 KW/h x 6.2 Php = 199,615,200.00 Php per year, tax free. (Generation & Transmission)

This means that every year, the company will earn the following FIT and Generation & Transmission revenues, tax free, per year:

199,615,200.00 Php (Generation & Transmission) + 274,631,880.00 Php (FIT revenue) =

Total: 474,247,080.00 Php per year, tax free, going to the company.

Let's see what that means on an annual revenue basis, with carbon credits included:

Philcarbon projects they will earn 21,395 carbon credits per year.
(source: http://www.philcarbon.com/projects/15mw-sagada-besao-wind-power-project.html)

Now using the current rate of 3 euros per carbon credit, let's do some more math.
(source: http://www.nordis.net/?p=14550)

21395 (carbon credits per year from the project) x 3 (euros) = 64185 euros, tax free, per year.

That is, at the current exchange rate: 3,377,202.00 Php per year extra, tax free.

Subtotal:
(FIT, Generation & Transmission)
= 474,247,080.00 Php per year, tax free.

Add in Carbon credits: 3,377,202.00 Php per year extra

Total (updated estimated) annual revenue:
477,624,282.00 Php per year, tax free.

So in 1 year, they estimate to make over $100,000,000 USD on the project. They won't even offer free electricity or anything else as a bargaining chip? The project is supposed to have a 20 year life, so you can multiply 20 x 100,000,000 to get an idea of what they stand to make. This is one project, you can also factor in the micro hydro indirectly involved as well.

Christian Lizardo Aligo said...

I delete comments that are repetitive. This is what we call Online Moderation. This is to protect readers from Spammers like you. Moreover, I am not a poor soul looking for money. I am blogging about my insights about the project from PhilCarbon without getting any money from the company. I am not like you. Anyway, thanks for tracking my blog and attacking me and my posts with your "anonymous" identity. Thanks for your efforts.

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