Here in the Philippines, the renewable energy sector suffered a tremendous setback at the Department of Energy (DOE) officially terminated eighty-four renewable energy service contracts over the failure of developers to meet their contractual obligations, according to a news release by the Philippine News Agency (PNA).
This new development reminds me of the DOE’s termination of 21 contracts with Solar Philippines due to its failure to fulfill the energy commitments.
To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…
The Department of Energy (DOE) has terminated 84 renewable energy service contracts this 2025 after developers failed to implement their contractual obligations.
These service contracts cover an “estimated 5,372.209 megawatts (MW) of potential capacity that had been factored into the country’s energy planning assumptions,” the DOE said in a press release Wednesday.
These were terminated “due to developers’ non-compliance with work program requirements, failure to satisfy the Green Energy Auction Program (GEAP) Terms of Reference, and non-adherence to established DOE standards.”
These actions, it said, “follow a comprehensive technical and legal evaluation of the affected projects’ compliance with the material terms and conditions of their respective service contracts.”
“The DOE will continue to uphold high standards for the succeeding GEAP rounds and may impose further sanctions, including blacklisting, forfeiture of performance bonds, and the imposition of applicable penalties,” it said.
The DOE said 43 other RE projects are under enforcement review and may be subject to termination.
With a big chunk of potential capacities unmet, the DOE said it is “actively revisiting supply-demand scenarios and undertaking further system planning to determine appropriate next steps toward meeting established generation targets.”
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the developers and stakeholders of the renewable energy sector of the Philippines are mostly incapable of fulfilling the requirements of the national government with regards to energy service contracts?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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