DOE axes 8 laggard RE contracts

The Department of Energy (DOE) is pulling the plug on renewable energy projects that fail to deliver, axing eight more service contracts this year as it cracks down on stalled and non-compliant developments.

The agency said Wednesday the cancelled contracts were terminated for non-compliance with work program requirements, the Green Energy Auction Program (GEAP) Terms of Reference, and other established standards.

“Renewable energy development must be fast, but it must also be accountable. The DOE will not compromise on contract discipline. Service contracts are performance commitments, and renewable energy projects must deliver real, reliable power for Filipino consumers,” Energy Secretary Sharon S. Garin said

According to DOE, the cancellations followed a thorough technical and legal review of the projects’ compliance with the material terms and conditions of their service contracts.

Likewise, it warned that stricter enforcement will continue in future GEAP rounds, with possible sanctions ranging from blacklisting and forfeiture of performance bonds to the imposition of applicable penalties.

As such, the crackdown may widen further.

The DOE said it has identified 42 other renewable energy projects that could also be terminated as its review continues.

With the latest cancellations, the total number of revoked renewable energy service contracts this year has climbed to 84, representing an estimated 5,372.209 megawatts of potential capacity that had been factored into the country’s energy planning assumptions.

As a result, the DOE said it is now revisiting supply-demand scenarios and undertaking further system planning to determine the next steps toward meeting generation targets.

The government targets to raise renewable energy in the power mix to 35 percent by 2030 and 50 percent by 2040.