The Department of Energy (DOE) said it is reviewing the possible termination of another batch of renewable energy (RE) contracts that are non-compliant with their project development timelines.
The DOE announced last October the first batch of delayed RE contracts upon its review. It involved 105 projects, of which 88 are either delayed in their pre-development timeline or not progressing at all.
Of the 88 projects, 53 are solar, 17 are hydropower, 10 are wind, five are geothermal and three are biomass projects.
Majority of these contracts were awarded in 2017 and 2019. The common reasons for the delays include failure to secure possessory rights or system impact studies.
The number of projects was not disclosed.
“We don’t have the numbers yet because, you know, at this point in time, we have over 1,400 renewable energy service contracts. We want to make sure that those that are not moving can be removed. And therefore, others can actually apply for those areas but we cannot open those areas unless you terminate the projects that have been assigned to those areas,” said Energy Undersecretary Rowena Cristina Guevara in a briefing in Taguig City yesterday.
DOE is still in the process of finalizing the results on the termination for the first batch of reviewed contracts as developers are expected to appeal, she added.
“As soon as we finish the review of a particular project and we deemed that it should be terminated because of delays in the work program, then we submit the termination letter to the Secretary. So, we have terminated some. The first 105, we have almost finished sending out the letters, but you know that some of them might go for a request for consideration,” Guevara said.
DOE Secretary Raphael Lotilla said in the same event termination of these contracts is not a deterrent to RE investments in the country.
“It would encourage more serious investments in the RE sector. Because there are commitments and so, if they are not able to move, then the others who have the technical, legal and the financial capability should be given an opportunity to develop the same. They become idle assets insofar as our people are concerned if they are not developed,” Lotilla said.
Based on data from the DOE, the total share of RE installed on-grid capacity, comprising hydro, geothermal, wind, biomass and solar technologies, stood at 9,361 megawatts as of end-October 2024, equivalent to 31.5 percent of the country’s power supply mix.
