DOE Tightens Rules as 105 Renewable Projects Face Termination

The Department of Energy (DOE) is set to terminate 105 renewable energy projects due to delays in meeting project timelines, in an effort to ensure timely implementation and accountability among developers.

Energy Undersecretary Rowena Cristina Guevara emphasized the Marcos administration’s commitment to speeding up the country’s renewable energy transition.

“If any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition,” Guevara said.

Of the 105 projects under review, 88 have shown little to no progress in the pre-development stage. These include 53 solar, 17 hydropower, 10 wind, five geothermal, and three biomass projects.

Many delays stem from issues like failure to secure possessory rights or system impact studies, critical steps to connect to the national grid.

The DOE introduced revised omnibus guidelines in June 2024 to streamline project approvals and filter out non-serious developers.

One key change is the requirement for a certificate of authority (COA) before developers can sign renewable energy contracts. This step allows developers to secure necessary permits and conduct feasibility activities before committing to a full contract.

The Philippines currently has 1,435 renewable energy service contracts, with a total potential capacity of over 156,700 megawatts.

As part of its energy goals, the government aims to increase renewable energy’s share in the country’s power generation mix to 35 percent by 2030.

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