Amid rising investor interest in the country’s energy market, about 1,350 megawatts (MW) of renewable energy capacity could become available to other developers following potential cancellations of contracts under the Green Energy Auction Program (GEAP).
According to data provided to the press, Solar Philippines Power Project Holdings Inc. (SPPPHI) and its subsidiaries have yet to develop its government-awarded projects.
The unbuilt capacity—larger than GEAP-1’s 1,260-MW solar target—represents projects that could have gone to developers capable of meeting delivery timelines.
SPPPHI, owned by Solar Philippines founder and Batangas Rep. Leandro Leviste, won 1,350 MW across six GEAP-1 projects in 2021: 200 MW in Concepcion Tarlac 2, 280 MW in Santa Rosa Nueva Ecija 2, 450 MW in Tayabas, 300 MW in Kananga-Ormoc, 120 MW in General Santos, and a 30-MW wind project in Calatagan.
The company also secured a 20-MW solar project in Nueva Ecija under GEAP-2.
All were expected to start delivering power by 25 December under GEAP-1 and 25 December 2026 under GEAP-2, but none have begun construction.
GEAP rules require winning bidders to maintain performance bonds equal to 20 percent of the project cost per capacity. SPPPHI posted about P14.01 billion in bonds, which expired between 1 to 2 August 2024, without renewal, putting the company at risk of forfeiture and civil action.
Expired bonds include P988 million for Concepcion Tarlac 2, P2.96 billion for General Santos, P4.45 billion for Kananga-Ormoc, P2.77 billion for Tayabas, P571 million for Calatagan wind, and P1.98 billion for Santa Rosa Nueva Ecija 2. Only the GEAP-2 Santa Rosa Nueva Ecija 3 project had a Notice of Claim filed.
Of 42 renewable energy service contracts awarded to its subsidiaries from 2017 to 2022, 24 were terminated, relinquished, or abandoned.
Seven GEAP projects and three non-GEAP projects remain non-compliant, leaving just nine in operation.
Several large projects—including the 1,200-MW Iba-Palauig and 1,680-MW Padre Garcia solar projects—were canceled for failing to meet work-program requirements or secure permits.
The Daily Tribune has reached out to Department of Energy for comments but to no avail as of posting.
To recall, the government has been intensifying action against idle renewable projects as investor interest grows. In 2024, the agency began removing stagnant projects from its pipeline, starting with 105 developers flagged for non-progress.