Remember back in 2024 when the government canceled multiple contracts it previously awarded to Solar Philippines as a result of its failure to fulfill the energy commitments? Solar Philippines is back in the spotlight and it is facing P24 billion in penalties over terminated contracts and the Department of Energy (DOE) revealed a lot about the company, according to a BusinessWorld news report.
The government terminated more than 160 renewable energy service contracts which represent a combined potential capacity of 17,904.02 megawatts (MW). Of that amount, Solar Philippines accounted for about 64% of the terminated solar projects as announced by the DOE Secretary Sharon Garin.
To put things in perspective, posted below is an excerpt from news report of BusinessWorld. Some parts in boldface…
SOLAR PHILIPPINES Power Project Holdings, Inc. is facing P24 billion in fines for its failure to deliver nearly 12,000 megawatts (MW) of renewable energy (RE) over the last two years, according to the Department of Energy (DoE).
“Out of the 17,904 MW of terminated contracts for 2025 and 2024… Solar Philippines would be 11,427 MW. That’s more or less equivalent to 64% of the terminated contracts,” Energy Secretary Sharon S. Garin said in a press chat on Tuesday.
Ms. Garin said the DoE terminated 33 service contracts held by Solar Philippines, a company founded by businessman-turned-politician Rep. Leandro L. Leviste, due to project delays. These service contracts could have supplied 11,427.83 MW of capacity to the grid.
The DoE said it seeks to collect around P24 billion in penalties from Solar Philippines which covers contractual obligations, performance bonds and financial obligations arising from the revoked contracts.
“We have consistently sent notices even show-cause orders request for them to renew their bonds. We have not received any response from the company,” she said.
Sought for comment, Mr. Leviste has yet to respond as of press time.
The DoE said it has recorded nearly 18,000 MW worth of potential capacity from 163 terminated and relinquished service contracts Ms. Garin said that 70 contracts were terminated and relinquished in 2024 and 93 contacts in 2025.
These terminated and relinquished contracts were composed of hydro, solar, wind, geothermal, and biomass that were awarded after application and green energy auctions (GEAs).
“This could have covered actually the annual increase of our electricity demand in the country. Unfortunately, we had to cancel these contracts. They’re not complying with the requirements and in accordance with their GEA contract. This is why we had to cancel them because they really wouldn’t move,” Ms. Garin said.
Under the revised omnibus guidelines governing the award and administration of RE contracts issued in 2024, the Renewable Energy Management Bureau can recommend termination of the contract if the RE developer failed to secure and submit needed requirements.
The RE developer has 30 calendar days to explain in writing why its contract should not be terminated. The developer whose RE contract was terminated may request for reconsideration.
Ms. Garin said that the revoked contracts will be open to other developers who are interested to apply or through the open and competitive selection process (OCSP).
OCSP allows the DoE to award RE contracts in pre-determined areas through competitive bidding. These are locations identified as having high potential for RE development, including hydro, geothermal, and wind resources.
Ms. Garin said that terminating contracts is not to “scare off investors” but to make sure “we have the right investors” in the Philippines.
“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,” Ms. Garin said.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the renewable energy sector of the Philippines really lacks legitimate investors who actually have the financial, technical, and legal capacity to embark on contracts of energy projects? Are you surprised that Solar Philippines failed to fulfill the energy commitments? If you are an investor, do you trust Solar Philippines?
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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