The Philippine Department of Energy (DOE) has warned that 105 renewable energy (RE) projects are at risk of termination due to non-compliance with project timelines. Delays in securing possessory rights and challenges in connecting to the power grid have been cited as the primary reasons for the setbacks. Many of these contracts were awarded between 2017 and 2019.
Of the projects facing termination, 88 are either stalled in their pre-development stages or have made no progress at all. This includes 53 solar, 17 hydropower, 10 wind, five geothermal, and three biomass projects.
In response, the DOE reiterated its commitment to ensuring timely project execution by closely monitoring progress and revising the regulatory framework as needed. “If any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition. This strategy not only accelerates the development timeline but also strengthens investor confidence in the country's renewable energy goals,” said Energy Undersecretary Rowena Cristina Guevara in a statement released over the weekend.
To enhance the pace of renewable energy development, the revised omnibus guidelines now require developers to obtain a certificate of authority (COA) before signing a renewable energy contract. The COA's validity ranges from five years for offshore wind projects to one year for land-based solar projects, depending on the type of energy source.
The Philippines aims to increase the share of renewables in its energy mix to 35% by 2030 and 50% by 2040. As of June, the DOE had awarded 1,435 service contracts with a potential capacity of over 156,700 MW, of which 6,100 MW has already been installed.
