The Market Monitor Minding the Nation's Business
Department of Energy (DOE) Secretary Raphael Lotilla assured that the agency’s decision to terminate idle renewable energy (RE) contracts will not deter foreign investors but instead foster a more dynamic and efficient RE sector in the Philippines.
Speaking at a press briefing in Taguig City last week, Lotilla emphasized that the termination of non-performing contracts aims to attract serious investments that lead to actual construction and operation of RE projects.
“In fact, it would encourage more serious investments in the RE sector,” Lotilla said. “If [the contract holders] are not able to move, then others with the technical, legal, and financial capability should be given an opportunity to develop the same.”
He explained that idle projects tied to inactive contracts become missed opportunities for energy development, causing public concern when they remain undeveloped.
DOE Undersecretary Rowena Guevara, also present at the briefing, disclosed that an additional batch of RE contracts is slated for termination following the initial review of 105 projects with delays in their work plans.
According to Guevara, the DOE has nearly completed issuing letters to proponents of the 105 stalled projects, though some developers are expected to appeal for reconsideration.
“That is possible,” she said. “But even though we have already issued the first batch, we are still conducting another review to ensure no more delayed projects are overlooked. If there are, we will issue further termination letters.”
The DOE has so far issued approximately 1,400 RE service contracts, reflecting the agency’s commitment to developing the country’s renewable energy potential and ensuring that service contracts lead to tangible progress.