Technology Brief

Harnessing

Wind Energy

for Off-grid Rural Electrification

ind energy is a secondary form of solar energy. It is considered one of the safest
and cleanest forms of renewables. Wind turbines do not generate greenhouse
gases although there are concerns about their noise and harmful effects on bird
life. Moreover, wind energy systems do not pose environment problems related to
decommissioning of obsolete plants. Apart from low operating costs, wind energy system
can be used for various applications in agriculture and industries. The system, however, is
site-specific requiring areas with wind speed of at least 3-4 meters per second. It requires
storage in terms of batteries or water reservoir due to considerable power supply variations.
A back-up system is also recommended for areas where wind supply is low.

Wind farm technology has had more advanced applications in Europe and the US. The
Middelgrunden wind farm in Denmark is currently the worlds largest offshore wind farm
with a capacity of 40 MW. It is the first step towards a batch of other Danish offshore wind
farms, each planned to generate 150 MW. In the US, the state of Texas has become the
hottest wind energy market, having recently developed a 250-MW wind energy facility. A
500-MW facility is scheduled for construction this year; another 300 MW is being considered.
This development occasioned the restructuring of the power sector in Texas. An integral
component of the reform is the Renewable Portfolio Standard (RPS), i.e., a program to
dedicate to renewables about 2,000MW of energy capacity, approximately 3 percent of the
states power supply, by 2009. 1
In the Philippines, wind energy system is gradually gaining advocates following the completion
of the wind resource map of the country. The potential sites for wind energy generation
have already been identified; majority of them are in the western side of the archipelago.
Among the promising areas are: Cuyo Island (5.58mps), Basco, Batanes (5.39mps),
Catanduanes (4.15mps), and Tagaytay City (5.0mps). Under current negotiations is a
project in Mindoro that will showcase wind energy system in the Philippines. The proponent
plans to set up 25 units of 750-kW or a 18.75-MW of wind power facility. A similar system
is being eyed for installation in the provinces of Catanduanes, Masbate and 12 other islands.
The Philippine Energy Plan for 1999-2008 forecasts that the contribution of wind energy
systems to the countrys power supply will reach 5 to 80 MW between year 2004 to 2008. If
current plans materialize, off-grid stand-alone wind turbine generators may be able to contribute
36.87 MW to the grid by 2008.

SATMP

Prepared by the Society for the Advancement of Technology Management

in the Philippines with the support of the Department of Energy and U.S.
Agency for International Development as part of the Technical Assistance
to the DOE for Enhancing Private Sector Participation in Renewable Energy.

Wind Energy Installations

in the Philippines
units, as of 30 April 2001

Region
CAR
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
ARMM
Total

Wind
Pump
6
18
5
117
7
1
46
24
2
6
1
6
2
241

Source: NESCON

Legend:
Wind Pumps
Wind Turbines

Wind
Turbine
2
2
2
1
6
13

Wind Energy Systems in the Philippines

What is wind energy?
Wind energy is derived from kinetic energy of moving air
that is converted into power through a mechanism called
rotor. The kinetic energy produced by the wind in unit time
increases with the wind velocity (exponentially, at a power
of three). Thus, doubling the wind speed increases the power
eight times, while doubling the rotor diameter increases the
available power four times. For example, at 3 meters per
second wind speed, the wind power per square meter is about
17 watts; while at 6 mps, the power that can be generated
per square meter is 136 watts.
In general, wind machines can only extract about 59 percent
of the wind kinetic energy. Actual performance efficiency
of wind machines varies from 10 to 50 percent depending on
the aerodynamic quality of the rotor. They are useful at a
mean wind velocity of about 2 mps and are safe to operate
up to a wind velocity of 25 mps.2
Wind energy conversion technologies are classified depending
on size and applications. The first is medium- to large-size
grid-connected Wind Turbine Generators (WTG) that have
evolved from 50-kW in the 1980s to about 800-kW in the
1990s. The present generation of commercial wind turbines
has gone past the 1000-kW mark. There are different design
concepts: three-bladed, stall- or pitch-regulated, horizontalaxis machines operating at near-fixed rotational speed. There
are other concepts such as gearless designs and variable
rotor speed designs. Modern installation techniques allow
commissioning in less than 6 months.
Another group belongs to intermediate-size wind turbines
in hybrid energy systems. The system is usually combined
with other energy sources such as photovoltaics, hydro, and
diesel, and used in small remote grids or for special
applications such as water pumping and battery charging.
These systems may have a capacity of 10 to 500 kW.
The third group is small stand-alone turbines for battery
charging, water pumping, heating, and the like. These systems
have capacity less than 10 kW. In small battery-charging
wind turbines, the size can range from 25 to 150 watts. By
far, the most common use of wind energy system in the
Philippines is the mechanical wind pump.

Major wind turbine installations

11.5kW Atulayan Hybrid Remote Area Power

System (HRAPS)

Inaugurated in October 2000, the Atulayan facility is a hybrid

of wind turbine as primary energy generator, and solar panels
as secondary energy source. The wind turbine generates
power even at low wind speed of 4.5 meters per second.
The turbines patented tilting axis allows power generation
even at high wind speeds; and in cases of typhoon, the turbine
tower can be lowered for safety. The solar power component
has twelve 75Wp panels. In periods where solar and wind
resources are not available, a diesel generator serves as a
back up system. An existing 75kVA genset was retrofitted
for the purpose.
The system provides 36.5kWh/day of electric power to the
villages 72 households, a school, street lights, playground
and seaweed dryer. It is equipped with 3x5.5kVA sine wave
interactive inverter and storage battery bank that allows 24hour AC power, 220V single phase and 380V three-phase.
The system has safety features that are ideal for remote
area installations including automatic controls for easy
operation. The investment cost of the Atulayan project
amounted to P2.3 million including installation cost.
Consumers pay P4.35/ kwh plus a fuel cost adjustment
charge.

10-kW Wind Turbine, Pagudpod, Ilocos Norte

In March 1996, NPC commissioned a pilot wind turbine in

Ayoyo, Pagudpud, Ilocos Norte with support from the
Philippine Council for Industry Energy Research and
Development (PCIERD). The project which costs P2.1
million demonstrates the technical and economic viability of
harnessing wind energy for power generation based on local
conditions. The average wind speed at the site was monitored
at 7.3 m/sec. The easterly wind blows about 36% of the
year, and the equivalent annual wind power density is
estimated at 532W/m2 .
Plant operation is limited to nighttime for 4 to 6 hours during
the lean wind months of May to September, but is available
for 24 hours daily during peak wind period from October to
April. In its first year of operations, the plant had an energy
surplus since the turbine was generating more electricity than
what was needed by the village. Revenues generated from
the 23 households served by the system amounted to P21,600
during the year. This corresponds to a daily load demand of
16 kwh. Due to the limited capacity of the battery banks,

surplus energy has to be dumped. The project has been in

operation until recently when the battery system was
damaged.

ANEC-Iloilo KW-Level WTG

A locally-designed and fabricated kilowatt-level wind turbine

generator designed by the ANEC-Iloilo is installed in Isla
Maahas, Calatagan, Batangas. The rotor has three 10-foot
long fiberglass blades with NACA 4412 profile. It is coupled
to a 15kVA generator via a two-step belt and pulley
transmission that multiplies the rotational speed (rpm) of the
rotor to match the rpm of the generator. The protected head
assembly is mounted atop a 60-foot tower made up of
galvanized pipes.
The power produced by the generator is used to charge a
battery bank which stores the energy for a more sustained
power availability even in the absence of wind conditions.
An inverter is used to convert the DC electricity from the
battery bank to 220VAC.
The generator is an induction motor that was slightly modified
to work as a generator. The modification was introduced so
the generator could operate at variable rotational speeds thus
enabling the system to produce electricity by operating as
an asynchronous generator.

Aerovolt: NewFendered Bucket Windmill

Aerovolt is a vertical axis windmill apparatus where a

movable wind shield covers the backturning buckets. This
set up limits the entry of usable wind to prevent over-revolution
of the windmill during strong winds. The aerovolt, which is
installed in Isla Maahas, Calatagan, Batangas, comprises of
six sets of half-rounded buckets that are made of light metals.
The wind pushes the buckets to rotate the centrally located
vertical shaft connected to the gears and pulleys that drive
the synchronous generator assembly. As the intercepted
wind is released, the buckets backturn traveling against the
flow of the wind. The slamming between the bucket and the
wind is prevented by the movable windshield that moves
forward to the position of wind scooping buckets.
The estimated investment for a 20 KW typhoon-proof aerovolt
windmill is about P716,800. The only imported component is
the generator costing P49,000. This represents not more than
10 percent of the total cost. The prototype has produced 50
to 100VAC electric power from a 5kw generator at
windspeeds of 4 to 10 meters/second. The overall efficiency
of the model was estimated at 30% to 40% and could go up
to 70% with improvements. The estimated cost of power
generation was P0.22/kwh.

Investing in Wind Power

Despite the abundance of wind resource in the Philippines
and the fact that wind energy technology has matured,
local utilization of wind energy system has not been as
widespread as may be expected. Several reasons account
for this. Foremost is the site specificity of the resource.
In most areas with abundant wind resource, the
communities have low incomes to be able to afford the
relatively huge investment costs required by the system.
In the case of mechanical water pump system, for instance,
the upfront costs can be steep for a single household to
bear. Another obstacle is the absence of product standards
for locally fabricated systems. There have been plans to
establish product standards, testing and accreditation
procedures to ensure the quality production of wind energy
systems, but none have yet materialized.
Nonetheless, communal wind pump systems are becoming
popular because more consumers can pitch in for the
upfront investment costs and there are cost savings in
larger systems due to economies of scale. The scale
economies apply as well to wind turbine generator systems;
thus, bigger wind turbines involve larger investments and
but the cost of generated electric power is lower.
The following sections show the life-cycle and levelized
electricity costs of wind power installations under the
following assumptions: (a) 10 years useful life for wind
pump; 15 years for wind turbine generator; (b) 12 percent
capital recovery factor; (c) 12 percent loan rate; (d) labor
cost at P150/day.

WIND PUMPS
Wind pumps are mechanical devices that transform the kinetic
energy of wind to cause the vertical action of a piston to suck
water upwards. In simple terms, the windmill replaces human
power in a hand-operated water pump set up.
Table 1 presents the financial profile of wind pump systems,
classified according to rotor size and capacity. The estimates
are based on installations in Western Visayas. The cost of the
system varies considerably depending on the design, materials,
labor costs of manufacturing and installation, and the cost of
transporting the system to the site. Prices may range from
P30,000 for a small system to P145,000 for a larger model.
Scale economies translate to lower investment cost per cubic
meter of pumped water as capacities become larger. The
levelized cost per cubic meter falls to P2.00 for large systems
that can pump 120 cubic meters of water daily.
Investment-wise, a windpump installation in Central Luzon does
not materially differ from those in Western Visayas. A 500gallon model manufactured by Reymill Steel Products in Sta.
Rosa, Nueva Ecija, is priced at P75,000. This model is
comparable to the WP 3.5 model quoted at P68,000 in Iloilo.
The price differential could be attributed to differences in labor
costs, transportation charges and costs of raw materials.
The current policy of local government units is to treat wind
pump system like other agricultural machinery or equipment.
Thus, no tax is imposed on the installation and operation of the
system.

Table 1
ECONOMICS O F WIND PUMP -WESTERN VISAYAS
In pesos
WP 1.5

WP 3.5

WP 4.5

WP 6.0

1.5 m
8
6 10 m
6m
1 5 m3 /day

3.5 m
18 24
6 10 m
6 10 m
15 30 m3 /day

4.5 m
18 - 24
6 10 m
10 40 m
30 70 m3 /day

6.0 m
24 32
6 10 m
10 40 m
45 120 m3 /day

Investment cost
Investment Cost per cu m

30,000
10,000

68,000
3,022

100,000
2,000

145,000
1,758

Annual costs:
Operation
Maintenance

4,500
2,500

4,500
6,000

9,000
9,000

9,000
13,000

Life-cycle cost
Levelized Cost per cu m

84,288
13.62

160,730
3.46

403,381
2.43

493,087
2.00

Rotor Diameter
No. of blades
Tower height
Pumping head
Typical output*

*at 3 m/s wind speed.

WIND TURBINE GENERATO R

Wind turbine generators (WTG) harness the power of the wind through a system of gears and pinions that drives a
generator to produce electric current. The action of the wind rotates the blades, that in turn, drives the shaft to power
the generator. Instead of a combustion engine or electric motor, the wind serves as the prime mover that drives the
generator.
Table 2 presents three types of WTGs with 1 to 2 meters of rotor diameter. A 50-watt system utilizing local
components costs P45,000. Annual operating and maintenance expenses amount to P8,500. Based on an estimated
useful life of 15 years and capital recovery factor of 12 percent, the levelized electricity cost is P103.40/kwh. A
larger system of 500-W would need an investment of P80,000, or almost double the smaller system but the levelized
cost would decrease to P18.63/kwh. Increasing the capacity 10 times would lower the levelized cost per kwh by 5.5
times.

Table 2
ECONOMICS O F WIND TURBINE
In pesos
Rotor diameter
No. of blades
Drive
Power output*
Voltage
Battery
Investment cost
Investment Cost per kW
Annual costs:
Operation
Maintenance
Life-cycle cost
Levelized Cost per kWh

WT 1.0
1.0 m
2
direct
50 W
12 or 24
automotive

WT 1.5
1.5 m
2
direct
200 W
12 or 24
automotive

WT 2.0
2.0 m
2 or 3
direct
500 W
12 or 24
automotive

45,000
900,000

67,500
337,500

80,000
180,000

4,500
4,000

4,500
6,000

4,500
8,000

154,229.87
103.40

216,020
36.21

277,811
18.63

*at 4 m/sec wind speed.

WIND HYBRID SYSTEMS

Wind energy systems can be used in combination with other NRE systems. A WTG can work in tandem with a PV
system to store power in batteries. A common and practical set up is an internal combustion engine such as diesel as
a back up for windmills. Alternatively, an engine can be powered by biomass fuel in a windmill-biomass set up.
Table 3 illustrates the economics of wind hybrid system coupled to biomass, PV and internal combustion engine.
Levelized cost would be lower for wind-biomass hybrid using rice hull gasifier, although the difference would only be
about 3 percent compared to an Internal Combustion Engine system. Utilizing a solar module would drive the cost to
P166.12 per kwh on account of the higher cost of solar panels. Investment cost would be higher for wind-biomass
hybrid on account of additional investment for fabrication of gasifier, imported generator and purchase of used engine.

Table 3
ECONOMICS O F WIND HYBRID SYSTEMS *
In pesos
Wind-Biomass

Wind-PV

Wind-ICE

WT 2.0 (500 W)
Generator 3 kW,
220V (China);
used engine (4K Toyota);
40 cu.m.rice hull gasifier

WT 1.0 (50 W)
Solar module 75 W
Controller 6 A
Inverter 200 W
2 units car battery 12V

WT 2.0 (500 W)
Robin engine genset
1400 W, 220/110V
(brand new)

3,500

125

1,900

Investment cost
Investment Cost per kW

167,000
47,714

99,400
795,200

127,000
66,842

Annual costs:
Operation
Maintenance

11,435
14,700

4,500
6,170

32,240
11,200

Life-cycle cost
Levelized Cost per kWh

529,901
35.53

247,778
166.12

549,247
36.82

Technical specification

Capacity (W)

*at 4 m/sec wind speed.

Projects in the Pipeline

Two major wind energy installations are currently in the pipeline: the 1,100-kW Batan Island Wind Plant Project and
the Mindoro Wind Farm.
The Batan project was originally conceptualized as a stand-alone PV-Wind-Diesel hybrid system by the provincial
government of Batanes. Due to the high cost of solar panels, the photovoltaic component was eliminated. The plant
is envisioned to have an initial capacity of 200KW and will be expanded to 1100 KW over a ten-year period as the
demand increases and funds are made available.
The project team would be led by the First Philippine Energy Corporation with the support of the Advanced Energy
Systems Ltd. of Australia. The facility will supply power to four towns: Ivan, Uyugan, Mahatao and the capital town
of Basco.
The project cost, including the provision for automated diesel control and radio communication hardware, is estimated
at P160.4 million. The generation cost of the existing diesel generation system in Batan Island is P12.80/kwh; the
wind project is expected to generate power at P4.77/kwh.
Another major boost to the wind energy sector is a proposal by BreezElectric-Philippines to establish wind farms in 14
islands in the archipelago. In Mindoro, the project involves developing 18.75-MW of wind power with an annual
output projected to reach 59 to 68 GWh. The details and terms of the proposal are still being worked out with
concerned agencies. Similar facilities are contemplated in Catanduanes, Masbate and other areas.

End Notes
1
2

Renewable Energy World Jan-Feb 2001

The Basics of Wind Energy Systems, Alexis T. Belonio, Wind Energy Association of the Philippines.

Laws and Regulations Relevant to Renewable Energy Projects

Omnibus Investment Code of 1987 (amended by RA 7918)
The Code provides investment incentives to enterprises registered with
the Board of Investments (BOI) NRE projects can be registered with BOI
for its pioneer status to avail of the following incentives:
(i)
(ii)
(iii)
(iv)
(v)
(vi)

Income tax holiday for 6 years

Exemption from value-added tax
Simplified customs procedure
Unrestricted use of consigned equipment
Employment of foreign nationals
Deduction on taxable income of expenditures on necessary
infrastructure related to project development
(vii) Additional deduction on taxable income of 50% of wages
corresponding to the increment in direct labor hired within the
first five years of registration
(viii) Deduction on taxable income of expansion expenses if additional
deduction for labor expense were not claimed.
Mini-Hydro Power Incentives Act (RA 7156)
Mini-hydro proponents can avail of the following incentives:
(i) Special privilege tax rates of 2% of gross receipts from sale of
electric power and from transactions incident to the generation,
transmission and sale of electric power
(ii) Tax and duty-free importation of capital equipment, materials and
parts
(iii) Tax credit on domestic capital equipment
(iv) Realty tax cap not exceeding 2.5% based on original costs of
equipment and machinery
(v) VAT exemption on gross receipts from electricity sales
(vi) Income tax holiday for 7 years
Law on OSW (EO 462, amended by EO 232)
For generation projects exceeding 1 MW, the private sector is allowed to
participate in the exploitation, development, utilization and
commercialization of ocean, solar and wind (OSW) energy resources,
through a production sharing contract with the national or local government.
The Department of Energy can extend assistance to OSW developers in
obtaining all applicable fiscal and non-fiscal incentives, including registration
as pioneer industry with the Board of Investments. In addition, OSW
developers can charge the cost of assessment, field verification and feasibilty
studies on other sites to their current commercial projects. They can also
secure access to lands and/or offshore areas where OSW energy resources
can be harnessed.
Agriculture and Fisheries Modernization Act of 1997 (RA 8435)
Apart from providing trade and fiscal incentives on the agricultural and
fisheries sectors, the Act provides for duty-free importation of machinery
and equipment, including renewable energy systems such as solar panels,
provided that such equipment shall be for the exclusive use of the importing
enterprise.
Clean Air Act (RA 8749)
The Act sets emission standards on stationary and mobile sources for
greenhouse gases, including power plants. NRE projects are favored to the
extent that some of its technologies, such as photovoltaics, have zero
emissions. But the Act imposes outright ban on incineration facilities
which may have adverse impact on biomass combustion facilities.
Combustion should be set at very high temperature levels for it to be
complete and free of emissions.
National Integrated Protected Areas System (NIPAS) Act of 1992
(RA 7586)
Some areas in the Philippines have been declared protected, thus
construction of NRE projects in these sites would require special permit.
The Department of Environment and Natural Resources (DENR) issues
the Environment Compliance Certificate to projects complying with the
environmental standards . For NRE projects that are located in areas

considered ancestral domain, the proponent must secure permits from the
concerned indigenous communities and the National Commission on
Indigenous Peoples.
RA 6957 BOT Law as Amended by RA 7718
Power plants may be constructed under a build-operate-transfer (BOT)
scheme whereby the private sector project proponent can recoup its
investments through the charging of toll fees and rentals during the contract
periods. Section 10 of RA 7718 provides that BOT projects in excess of
P1 billion shall be entitled to incentives as provided by the Omnibus
Investment Code.
DOE Circular No. 2000-03-004
This Circular amends the law that seeks to elicit private sector participation
in power generation. Relevant to NRE development are the following
proviso:
(1) Companies do not have to show a five-year track record to receive
accreditation for NRE generation facilities, provided that the
technology being proposed has already achieved commercial status
and can be demonstrated to be adaptable to local conditions; or if
the project is for self-generation purpose, or the proponent is
technically and financially capable.
(2) The provision for spinning reserve imposed on Private Sector
Generation Facility shall not apply to RRPPF/NREF projects if
(a) the project is not connected to either the national backbone
grid, or regional or island mini-grids; or (b) the project is connected
to a regional or island mini-grid powered by conventional generation
reasonably capable of load following, e.g., peaking or intermediate
diesel generation plants. If the RRPF/NREF project is proposed
for connection to the national backbone grid, the provision on
spinning reserve shall be subject to negotiation with the
transmission system operator or from any future regulatory body
overseeing the operations of the transmission grid system.
(i) Thermal efficiency requirement for cogeneration facilities using
NRE, including hybrid systems has been removed.
(ii) Renewable resource power production facilities are exempt from
submitting 10-year power supply agreement and are only required
to demonstrate potential net foreign exchange savings by virtue of
utilizing renewable energy sources.
(iii) For projects that supply electricity to a designated utility or user,
or for internal use, the power development plan review and approval
requirements of the Department of Energy shall not be required.
DOE Circular No. 2000-10-011
This Circular mandates the acceleration of Rural Electrification Program
by instituting summary procedures in the approval and subsequent release
of the electrification fund to the franchised distribution utility or project
implementor. Section 2f of the Circular provides that the electrification of
target areas should be accomplished in the least-cost possible manner
which means either adopting the conventional line design or utilizing
indigenous and renewable energy sources.
DOE Circular No. 2000-03-003
This Circular amends the 1994 DOE regulation that prescribes the provision
of direct benefits to local government units (LGU) hosting energy resource
development projects and/or energy-generating facilities. The amendments
streamlined provisions concerning allocation of fund and generation of
livelihood projects. Section 7 provides that in cases where the grid type is
deemed unavailable for energizing a particular LGU, the electrification
fund may be redirected by the DOE in favor of utilizing NRE system to
speed up the electrification of the concerned area.