The Department of Energy on Tuesday announced it has cancelled 33 renewable energy service contracts of project company Solar Philippines Power Project Holdings Inc. led by Rep. Leandro Leviste.
This developed as the DOE announced a total of 163 relinquished and cancelled contracts covering the period 2024 to 2025 with a total capacity of 17,90a4 megawatts.
Bulk of the cancelled contracts are under Solar Philippines, with a total capacity of 11,427.83 MW, representing 64 percent of the total cancelled contracts. Most of its contracts are located in Luzon.
The DOE also aims to collect an estimated P24 billion covering performance bonds, contractual obligations and financial obligations from Solar Philippines.
Energy Secretary Sharon Garin said the awarded contracts, if they materialized, could have actually covered the annual increase of the country’s electricity demand in the country.
“Unfortunately, we had to cancel these contracts. Why? Because they’re not doing anything….Actually, we waited until the last minute. We were hoping against hope that they will deliver because this is a much needed megawatts or power that the country needs,” Garin said.
“Unfortunately, these contracts have obviously, despite the communications of DOE, insistence of DOE, they have failed to deliver,” she said.
Data showed that some of the contracts over biomass, geothermal, hydro, solar and wind projects.
Some of the canceled contracts were also offered under the Green Energy Auction Program.
“The purpose is not to scare off investors. It’s to make sure that we have the right investors in the Philippines,” Garin said.
“So, what we want are really legitimate investors that have the financial, technical, and legal capacity to embark on a contract and an energy project in the Philippines. This is why we are cleaning it up.”
She said the contract cancellations should serve as a reminder to the developers to also do their part.
“We go the extra mile in order for these projects to finish. But if you don’t deliver, then we will also take the extra mile to make sure that the penalties are imposed,” she said.
