The Department of Energy said Wednesday it terminated 84 renewable energy contracts to free up a combined potential capacity of 5,372.21 megawatts.
The agency said it is conducting an enforcement review and has 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 projects had previously been factored into national energy planning assumptions.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 consumers.
The contract cancellations are part of the agency’s enforcement of its regulatory mandate, Garin said.
The DOE monitors all developers and has acted against those that failed to meet contractual obligations.
Violations include noncompliance with work program requirements, failure to satisfy Green Energy Auction Program (GEAP) terms of reference and non-adherence to agency standards.
The department’s actions follow a technical and legal evaluation of the projects’ compliance with the material terms and conditions of their 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 fines.
The agency is revisiting supply-demand scenarios and undertaking further system planning to meet 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 terminations ensure contracts are awarded to capable developers ready to deliver.
