DOE to revoke idle renewable energy contracts

The Department of Energy (DOE) is moving to terminate stalled renewable energy (RE) service contracts to unlock up to 130 gigawatts (GW) in potential capacity and attract fresh investment into the Philippine energy sector.

Energy Secretary Sharon Garin said the department is “purging” contracts that have failed to progress from pre-development to development stages despite being awarded years ago.

“We’ll continue to purge. We’re just giving them the due process, the notice, the show cause orders, and all that,” Garin told reporters. “If it’s not moving, then they should not be holding those contracts.”

As of July, the DOE had awarded around 1,400 RE service contracts totaling 130 GW, with some already terminated or reassigned to other developers.

Energy Undersecretary Mylene Capongcol said the department is streamlining the termination process and will reoffer idle projects under the Open and Competitive Selection Process (OCSP), which allows rebidding by interested developers.

Speaking at the Asia Clean Energy Summit (ACES) in Singapore, Garin said the move is part of efforts to prepare for renewed investor interest in the country’s clean energy space.

“There are so many that want to invest, and we’re telling them we’re purging and trying to clean up [the stalled projects], and there will be other areas that are more interesting [but] are not moving,” she said.

Last month, Energy Undersecretary Rowena Guevara said increased foreign participation has already expanded the country’s renewable capacity, supporting the national goal of achieving a 35% RE share in the power mix by 2030 and 50% by 2040.

DOE data showed that 13 solar contracts worth 1,297.5 megawatts (MW), 53 onshore wind contracts, and nine offshore wind contracts totaling 13,183.95 MW have been awarded to date.

However, the agency has not yet disclosed how many contracts have been revoked this year.

The Independent Electricity Market Operator of the Philippines (IEMOP) reported that several new renewable facilities have begun joining the Wholesale Electricity Spot Market (WESM), helping boost supply stability.

As of October 26, three solar projects in Luzon and Mindanao had started commercial operations, while another three completed testing and commissioning.

Other facilities include the 4 MW Colasi mini hydroelectric plant in Luzon, which recently completed commissioning, while the Bago Binary geothermal plant is under testing.

Two battery energy storage system (BESS) projects and two conventional power plants are also preparing to begin operations, according to IEMOP.

The DOE said the ongoing cleanup of idle contracts and the entry of new generation facilities will strengthen the country’s renewable energy transition and support long-term grid reliability.