The Department of Energy (DOE) has initiated the termination of renewable energy (RE) service contracts that fail to meet development timelines.
Energy Undersecretary Rowena Cristina Guevara disclosed that notices have already been sent to developers of the first 105 projects under review.
DOE data shows that 88 of the 105 projects are either stuck in pre-development or have shown no progress. The agency has not yet revealed the identities of the developers involved.
“The DOE is conducting a second review to identify more delayed projects,” Guevara said, adding that terminated contracts will be reassigned to new developers who can advance the projects.
Guevara clarified that developers of affected projects may appeal the decision by filing a motion for reconsideration.
Energy Secretary Raphael Lotilla emphasized that removing stalled projects will attract more serious investors to the renewable energy sector.
“This is a critical step to ensure that resources are utilized efficiently and to encourage committed investments in renewables,” Lotilla said.
The DOE has awarded more than 1,400 RE service contracts to date. The move to clean up inactive projects aligns with the government’s target of increasing renewable energy’s share in the energy mix to 35% by 2030 and 50% by 2040, up from the current 22%.
