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Manila Bulletin devider Business devider DOE tightens rules for renewable energy projects

DOE tightens rules for renewable energy projects

Published Oct 21, 2024 03:23 am

The Department of Energy (DOE) announced the implementation of stricter guidelines, evaluations, and contract termination processes for renewable energy (RE) projects to ensure their timely completion and efficiency.

In a statement, Energy Undersecretary Rowena Cristina Guevara said tthe move is in line with the government's commitment to accelerate the development of RE in the country. 

“If any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition,” Guevara said.

“This strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals," she added.

Under the new guidelines, the DOE will conduct periodic evaluations of RE projects and implement policies to simplify administrative procedures, minimize delays, and enhance developer accountability. 

Non-performing contracts will be opened up to new developers who can effectively bring the projects to fruition.

Last June, the DOE also revised its omnibus guidelines to weed out non-serious developers and improve the award and management of RE contracts. This includes a stricter implementation of contract termination for projects that are delayed or non-compliant with necessary permits.

For existing solar energy service contracts, developers have two years to complete the pre-development stage. Failure to do so may result in a show-cause order and potential contract termination.

The DOE has identified around 105 renewable projects that are currently being processed for termination, mostly due to delays in securing permits or system impact studies.

To streamline the permitting process, the DOE is also utilizing its Energy Virtual One-Stop Shop (EVOSS) System. This system is designed to reduce bureaucratic hurdles and promote investments in the RE sector.

With these stricter guidelines and streamlined processes, the DOE aims to create a more conducive environment for renewable energy development in the Philippines.

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Department of Energy (DOE) Energy Undersecretary Rowena Cristina Guevara
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