At least 105 renewable energy (RE) projects face possible termination due to non-compliance with project timelines.
The Department of Energy (DOE) said in a statement yesterday majority of these contracts were awarded in 2017 and 2019 and have cited failure to secure possessory rights or system impact studies (SIS) as the reason for project delay.
SIS determine the effects of a proposed power project to customer connections in a grid and ascertain if adjustments in the system are needed such as additional transmission lines, transformers or substations.
DOE said of the total 105 projects, 88 are either delayed in their pre-development timeline or not progressing at all. Of the 88, 53 are solar, 17 are hydropower, 10 are wind, five are geothermal and three are biomass.
The DOE said it is implementing a clear contract termination process for RE projects.
The DOE added it also continuously monitors the progress of RE development projects to ensure their timely implementation through periodic evaluations and implementing updated guidelines that streamline processes and promote efficient project execution.
The agency said these updated guidelines are designed to simplify administrative procedures, reduce delays and encourage accountability among developers.
DOE Undersecretary Rowena Guevara said the government is ensuring efficient and timely execution of RE projects by regularly assessing their progress and refining regulatory framework.
“If any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition. This strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals,” Guevara said.
Last June, the DOE released a revised omnibus guideline that governs the award and administration of RE contracts and the registration of RE developers which helped to identify and filter out non-serious developers.
The revised policy also introduced new opportunities for developers to improve their work program, including the requirement to obtain a certificate of authority (COA) before signing an RE contract.
COA empowers developers to secure the necessary permits and conduct essential surveys and pre-feasibility activities even prior to the commencement of the official 25-year contract.
DOE said by allowing these activities to take place earlier, developers can better prepare for project implementation and address potential challenges proactively not only to accelerate project timeline but also to enhance overall efficiency of the development process.
The COA is valid for five years for offshore wind projects, three years for biomass, geothermal, hydropower, ocean and onshore wind projects, two years for floating solar and one year for land based solar projects.
“These streamlined procedures are designed to promote investments in the renewable energy sector by reducing bureaucratic hurdles and avoidance of service contract termination, ultimately supporting our country’s transition to a more sustainable energy landscape,” Guevara said.
