Manila: The Department of Energy (DOE) has terminated and relinquished 163 renewable energy (RE) service contracts from 2024 to 2025 due to developers' failure to meet their obligations. In a press briefing Tuesday, DOE Secretary Sharon Garin stated that the canceled contracts represent a combined potential capacity of 17,904.02 megawatts (MW).

According to Philippines News Agency, the majority of the terminated contracts involve solar energy, encompassing 59 projects with a total potential capacity of 12,271.29 MW. "Unfortunately, we had to cancel these contracts because the developers were not complying with the requirements under their GEA (Green Energy Auction) contracts," Garin explained.

Among the affected developers is Solar Philippines Power Project Holdings Inc. (SPPHI), which Garin indicated accounts for about 64 percent of the terminated solar projects. She further mentioned that civil, criminal, or administrative charges will be filed against noncompliant developers.

"The goal is not to scare off investors but to ensure we have legitimate investors with the financial, technical, and legal capacity to undertake energy projects in the Philippines," Garin emphasized. Solar Philippines alone may face penalties of approximately PHP24 billion for performance bonds and other contractual and financial obligations, she noted.

Garin also announced plans to open the canceled contracts to new developers, with the DOE set to post the list on its website. Additionally, the government will implement a catch-up plan to achieve its target of renewable energy contributing to 35 percent of the country's energy mix. "We are confident we can achieve this because we have many projects," Garin assured.