Pulling a fast one

Renewable energy is inevitable, as evidenced by the growing interest among major energy companies.

Industry insiders said that a conglomerate known for gaming the energy industry is making its presence felt in the Green Energy Auction rounds.

The Department of Energy awarded more than 6,700 megawatts of renewable energy capacity in the Green Energy Auction-3 that was announced on 10 June, significantly surpassing the 4,650 MW target.

San Roque Hydropower Inc., an affiliate of the San Miguel Group, secured awards for three pumped-storage hydropower projects, the 800 MW San Roque Lower East PSH and 800 MW San Roque West PSH in Itogon, Benguet, and the 250 MW Aklan PSH in Malay, Aklan, all totaling 1,850 MW.

The substantial allocation underscores SMC’s dominance in the energy sector. It aligns with the DoE’s goal of enhancing renewable energy capacity, particularly through the PSH, which accounted for 6,350 MW of the awarded capacity.

That’s the good news. But what is being questioned by industry players is the speed by which the otherwise slow approval of permits and licenses for the corporate giant under the GEA 3 auction occurred.

The now dominant energy giant, which started out as a food and beverage firm, completed its GEA-3 bid requirements, including local permits, Indigenous Peoples consultations, public consultations, and Department of Environment and Natural Resources environment compliance certificate in just one week during the New Year holiday break.

Securing an ECC, for instance, involves a rigorous Environmental Impact Assessment, stakeholder consultations, and coordination with local government units and IPs, a process that often takes months.

Questions were raised over DENR’s signing of permits on a holiday, suggesting either an exceptional efficiency or irregularities.

The DENR, under Maria Antonia Yulo-Loyzaga, has implemented streamlined processes, such as parallel processing for mining permits, which has reduced timelines from six to three years.

Similar efficiencies could have been applied to energy projects through the Energy Virtual One-Stop Shop system of the Department of Energy, which facilitates inter-agency coordination. However, a one-week turnaround, especially during a holiday, is highly unusual, according to an industry insider.

The source said papers required for the GEA bid were submitted one day before the DoE deadline, which was a reason for former Secretary Rafael “Popo” Lotilla to be “not happy with that, so he was not unhappy to transfer to Loyzaga’s cold seat.”

Lotilla was transferred to DENR during the recent Cabinet shakeup that saw Yulo-Loyzaga not being reappointed after she submitted a courtesy resignation.

It was remarkable that none of the other bidders complained about this when it became general knowledge, the source said, referring to the apparent preferential treatment given to the conglomerate.