The Market Monitor Minding the Nation's Business
In a bid to jumpstart the country’s clean energy transition, the Department of Energy (DoE) is set to crack down on long-idle renewable energy (RE) projects, vowing stricter monitoring and the revival of stalled initiatives.
Energy Assistant Secretary Mylene Capongcol said the agency is now taking a more aggressive stance in tracking projects that have remained inactive for years. “It’s about time these dormant projects are awakened from their lethargy,” she said, as she emphasized the DoE’s push to ensure developers fulfill their delivery commitments.
As of February this year, the DoE has awarded over 1,400 RE service contracts with a combined potential capacity of 154 megawatts. These include 569 solar, 420 hydropower, 307 wind, 74 biomass, 32 geothermal, and nine ocean energy projects.
“Our goal is to remove barriers to renewable energy development,” Capongcol said. “We’re not saying RE will solve all our energy problems, but it can certainly help sustain our indigenous supply and reduce dependence on imported fuels.”
Under the Philippine Energy Plan, the government targets to increase the share of renewables in the energy mix from the current 22 percent to 35 percent by 2030, and 50 percent by 2040.
To boost project implementation, the DoE is also eyeing a new mechanism that will allow terminated or stalled RE contracts to be opened up to other interested developers—as long as it is done in the most cost-effective and beneficial way for the country.
Last October, the DoE flagged 105 renewable energy projects as being at risk of cancellation due to failure to meet development milestones.
Of these, 88 projects—including 53 solar, 17 hydropower, 10 wind, five geothermal, and three biomass—have stalled in their early stages.
Capongcol clarified that developers facing possible contract termination may still file motions for reconsideration, giving them a final opportunity to deliver on their commitments before the government reallocates the projects. TRACY CABRERA