The Department of Energy (DOE) said Wednesday it terminated 84 renewable energy contracts to free up combined potential capacity of 5,372.209 megawatts (MW).
The agency said it is conducting an enforcement review and identified 42 other renewable energy projects that may be subject to termination.
DOE officials said the resulting vacant capacity could be developed by committed energy players to ensure the country’s energy security.
Under a strict enforcement drive this year, the DOE terminated eight additional renewable energy service contracts. The capacity from these specific projects had previously been factored into the national energy planning assumptions.
Department of Energy Secretary Sharon Garin said renewable energy development should be fast and accountable.
She said the agency would not compromise on contract discipline and that service contracts are performance commitments required to deliver reliable power for Filipino consumers.
The contract cancellations are part of the agency’s enforcement of its regulatory mandate, she said.
The DOE closely monitors all developers and has acted against those that failed to meet contractual obligations. These violations include non-compliance with work program requirements, failure to satisfy Green Energy Auction Program (GEAP) terms of reference and non-adherence to established agency standards.
The department’s actions follow a comprehensive technical and legal evaluation of the affected projects’ compliance with the material terms and conditions of their respective service contracts, she said.
The DOE said it would continue to uphold high standards for succeeding GEAP rounds and may impose further sanctions. Potential penalties include blacklisting, forfeiture of performance bonds and the imposition of applicable fines.
The agency said it is actively revisiting supply-demand scenarios and undertaking further system planning to determine next steps toward meeting established generation targets.
Department officials said the enforcement action affirms a commitment to accountability and the integrity of the renewable energy development pipeline.
They said the contract termination ensures service contracts are awarded to capable and committed developers with the readiness to deliver.
