(in PHP Millions)
Both Burgos Wind Project and Burgos Solar Project registered lower revenues in 2019 compared to 2018. Factors that affected the performance of both are comprised of natural causes and scheduled and unscheduled maintenance works.
Burgos Wind in particular, experienced its lowest generation ever and continued with the downward trend until April of the same year. However, this trend reversed in the second half of the year where its generation from August to November was at its highest since it started operations.
BURGOS WIND PROJECT ILOCOS NORTE earned a total of PHP 2.9 billion in revenues for 2019, a 9.4 percent decrease from the PHP 3.2 billion in 2018.
This was driven by lower generation in the first half of 2019 due to the effects of El Niño. Fortunately, the Burgos Wind Project saw a partial recovery in its generation in the second half of 2019 as a result of several Low Pressure Areas (LPAs) and a strong Amihan.
BURGOS SOLAR PROJECT ILOCOS NORTE earned a total of PHP 86.8 million in revenues for 2019, a 4.5 percent decrease from the PHP 90.9 million 2018.
This was a result of planned and unplanned outages due to the Burgos Solar Farm’s transmission line upgrades, as well as Ilocos Norte Electric Cooperative Inc.’s (INEC’s) scheduled power interruption due to the transfer of poles and conductors affected by DPWH’s road expansion project.
EDC SIKLAB earned a total of PHP 39.4 million in revenues for 2019, a 19.0 percent increase from the PHP 33.1 million in 2018.
This was due to higher generation experienced with three fully operational solar rooftop projects in 2019.
First Gen prioritized the growth of its capitals by investing in various initiatives and developments that promote workplace health and safety, power plant resiliency, and wind farm efficiency. The Company conducted proper typhoon preparations to safeguard employees and other stakeholders, as well as Company assets.
Ensuring a safer workplace through:
▷ Careful placement of signages and safety devices.
▷ One Permit-to-Work System implementation.
▷ Healthy and safety trainings.
Preparation for low pressure areas and typhoons through:
▷ Coordination with contractors for their skeletal force.
▷ Conducting call tree simulations.
▷ Yaw Back Up Protection System and emergency generator sets.
▷ Emergency supplies storage.
▷ Review of Extreme Wind Management plan.
▷ Better LGU coordination.
Optimizing operations through:
▷ Discussions with different suppliers on available options for increasing wind energy generation.
In 2019, the wind and solar business units optimized operations through initiatives that allowed its facilities to produce energy efficiently and save on costs.
Wind farm maintenance activities are done during low wind in order to minimize or avoid generation loss. Aside from maintaining the turbines, the following were also scheduled within the year: preventive maintenance activities of substation highvoltage equipment and peripherals, civil works, and transmission line maintenance.
Previously handled by an external contractor, the maintenance was transferred in-house to the wind and solar team’s engineers. The first in-house site maintenance activities of the solar rooftop plants were in Kalibo, Oton, and Passi, which were done in March 2019.
EBWPC was recognized on September 12, 2019 for its contribution by planting 1.0 million trees with an 80.0 percent survival rate within three years. This was in compliance with the Memorandum of Agreement (MOA) signed with Department of Environment and National Resources (DENR).
The wind and solar facilities executed programs designed to create value and/or improve business operations, in order to address the identified needs of stakeholders. These programs are aligned with the Lopez Group’s CSR principles that focus on the areas of education, livelihood, and environment.
“Usapang Werpa” radio program with discussions about protecting the environment.
Construction of rainwater harvesting tanks in seven elementary schools.
Ecobrick initiative to reduce waste generated by municipalities.
Tree planting and other environmental initiatives implemented by BINHI.
Coastal clean-up at Kapurpurawan Rock Formation
Coastal clean-up at Kapurpurawan Rock Formation
Municipal Fire Olympics to enhance the fire brigades’ capabilities in fire suppression and rescue.
Donation of relief goods to Typhoon Ineng victims.
Apart from CSR programs, First Gen also invested in technology and partnerships that optimize operations and can benefit stakeholders in the long-term.
This installation is expected to improve the annual energy yield of Burgos Wind Farm’s wind turbines by 1.5 GWh through cut-out wind speeds extension and power curve during operation optimization.
As government develops new green incentives (i.e., Green Energy Pricing) and as the cost to build new wind power plants goes down, several wind service contracts are being revisited and reviewed to reevaluate their viability.
Once the service contracts’ constraints in Ilocos are addressed, the viability of installing more wind turbines improves further.
For 2019, each subsidiary ensured it acquired the necessary certifications and executed training programs for its employees. Each plant’s immediate compliance also gained them recognition during the year.
▷ 8-hour Occupational Health and Safety Seminar
▷ First Aid Training
▷ WESM Generators’ Compliance Training
▷ Solar Operations and Maintenance Training
▷ Certification of Compliance Renewal of Burgos Wind Project
▷ Board of Investments Registration of Gaisano La Paz
▷ Best Production Values Award for Radio Program “Usapang Werpa”
▷ Top Real Property Taxpayer Awards for EDC Siklab awarded by the municipality of Balasan