The Department of Energy (DOE) has terminated contracts totalling 17,904 megawatts (MW) under the Green Energy Auction program in the last two years, with Solar Philippines Power Holdings, Inc. shouldering the largest share—11,427 MW, or roughly 64 percent of the cancelled projects.
Speaking to reporters on Tuesday, Energy Secretary Sharon S. Garin revealed that the company has not responded to repeated notices demanding compliance or payment of performance bonds.
“We have consistently sent notices, even Show Cause Orders, and requests for them to renew their bonds, but we have not received any response from the company,” Garin said.
She estimated that Solar Philippines alone faces about P24 billion in financial, contractual, and administrative obligations, including performance bonds and project costs, and stressed that other developers with valid bonds would also be held accountable.
“We will pursue this obligation, and this is the first time that DOE would really pursue the imposition of this penalty,” Garin said.
Based on the latest government data, the DOE terminated a total of 93 power projects totaling 8,604.14 MW under the Green Energy Auction Program in 2025 to clear stalled projects and open capacity to new developers. This followed the cancellation of 70 contracts worth 9,299.88 MW in 2024.
According to Garin, all cancellations were carried out with due diligence and are intended to keep the country on track in meeting its national renewable energy targets, while also allowing the government to reallocate capacity and offer more opportunities to other developers.
To prevent a repeat of these massive failures, the DOE has tightened rules on applications, bond requirements, and contract terms. The agency is also drafting a circular to enforce developers’ obligations on project delivery, outage management, and compliance.
“What we want are really legitimate investors that have the financial, technical, and legal capacity to embark on a contract and an energy project in the Philippines. This is why we are cleaning it up,” Garin said.
Despite the setbacks, the DOE remains confident it can meet the country’s renewable energy targets.
With shorter construction timelines for solar farms and a push for new green energy projects, Garin said the department is ready to recover lost capacity.
“Technology is on our side. To construct a solar farm is less than a year so we will push for more renewable energy options for this year and push for full compliance of the electricals requirements of the RPS requirement. The 2030, 2040, and 2050 targets are non-negotiable. That’s the responsibility of DOE to catch up with,” Garin said.
The DOE is pushing to accelerate projects supporting its target of a 35 percent renewable energy share by 2030 and 50 percent by 2050.