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Manila Bulletin devider Business devider No more 'sitting' on contracts: DOE takes aim at stalled renewable energy projects

No more 'sitting' on contracts: DOE takes aim at stalled renewable energy projects

Published Nov 21, 2024 02:50 am

To curb delays in renewable energy projects, the Department of Energy (DOE) is cracking down and expects to cancel more by year's end, following the termination of over 100 projects last month for missing deadlines.

On the sidelines of Buhawind Energy Philippines (BEP)’s Offshore Wind Forum, Energy Undersecretary Sharon Garin stated that the department is implementing stricter measures to monitor project timelines.

"We want to be strict about it," Garin told Manila Bulletin. "We don't want them to apply for service contracts and do nothing and just sell the service contract. We want serious developers that do their homework to fulfill their commitment."

In October, the DOE began terminating 105 renewable energy projects, 88 of which were stuck in the pre-development stage. The majority of these were solar projects (53), followed by hydropower (17), geothermal (5), and biomass (3).

Land acquisition and grid connection challenges have been identified as major obstacles. "We don't want developers that just apply and leave the potential of the area," Garin added. "It deprives the country, especially the developers that can bring electricity."

The DOE is also developing an internal data system to automate contracts and conduct a comprehensive audit.

Offshore Wind Development

Despite the challenges, there is optimism regarding offshore wind development. Buhawind Energy Philippines (BEP) has reaffirmed its commitment to expedite projects, particularly in Northern Luzon.

Francisco Delfin Jr., BEP's vice president and chief operating officer, explained that the company received its renewable energy service contract three years ago and aims to complete pre-development studies by 2026.

However, challenges remain, such as grid connection and access to viable ports. Jasmin Bejdic, BEP's CEO, emphasized the importance of collaboration with the DOE and the National Grid Corporation of the Philippines (NGCP) to address these issues.

"One of the hurdles is the grid connection," Bejdic said. "We're working hard with the DOE and the NGCP to solve these issues. That's one of the critical issues that would need to be addressed to support renewable energy penetration, especially with offshore wind."

BEP, a joint venture between PetroGreen Energy Corporation (PGEC) and Denmark-based Copenhagen Energy, presented its two-gigawatt floating offshore wind farm project in Ilocos Norte. This project is expected to significantly boost renewable energy integration in the Philippines.

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Department of Energy (DOE) Sharon Garin Energy Undersecretary
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