The Department of Energy (DOE) is threatening to terminate service contracts for 105 renewable energy projects due to missed deadlines. The DOE aims to encourage more serious investments in the sector by removing stalled projects and opening opportunities for capable developers.
The service contracts of 105 renewable energy (RE) projects are in danger of being terminated due to their proponents' failure to comply with completion timelines, the Department of Energy (DOE) said on Tuesday. Most of the contracts were awarded in 2017 and 2019.
Of the 105, 88 were said to have been delayed in the predevelopment phase or not progressing at all, Energy Undersecretary Rowena Guevara said, adding that 53 of the projects are solar; 17, hydropower; 10, wind; five, geothermal; and three, biomass. The 105 projects up for termination comprise the first batch of over 1,400 RE undertakings. 'We have almost finished sending out letters to them. As for the second batch, we don't have the numbers yet, because we have over 1,400 RE service contracts. We want to make sure those not moving forward can be removed,' Guevara said. Some of the companies have filed motions of reconsideration on the termination of their projects, though Guevara said he did not have exact figures and project names since the documents were still being evaluated. 'This evaluation of projects will not make investors lose interest, but instead encourage more serious investments in the RE sector,' Energy Secretary Raphael Lotilla said. 'So, if the initial stakeholders cannot move forward... then the others who have the technical, legal and financial capabilities should be given an opportunity to develop . They become idle assets... if they are not developed.' In October 2024, the DOE said that it had launched various initiatives to speed up the development of RE projects for timely implementation, such as the release of the revised omnibus guidelines which govern the award and administration of contracts, and the registration of RE developers. 'For those filing for reconsideration... the submission period is not yet ... Before we , we have to check... it's a complex process,' Guevara said
RENEWABLE ENERGY PROJECT DEVELOPMENT SERVICE CONTRACTS INVESTMENT ENERGY POLICY
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