Despite the Department of Energy’s (DOE) efforts to cancel renewable energy (RE) contracts that miss their implementation timelines, the agency continues to shy away from investigating the murky waters of potentially questionable project shareholders, and as a result, the industry’s darker corners remain untouched.

The RE sector remains rife with shady players—from politicians masking ownership through shell companies to foreign investors with ties to dubious schemes and illicit transactions, as well as the ever-present consultant-flippers, all of whom continue to exploit the system as part of their core investment strategy.

Around October last year, the DOE promised a tougher crackdown on questionable RE service contracts, but the enforcement ultimately boiled down to a one-dimensional focus on non-compliance. The probe does not yet cover the broader web of issues related to ethically ambiguous capital streams.

At the very least, the department stated that “if any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition.”

The agency qualified “this strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals,” and such was aligned with the new guidelines rolled out in June 2024 for awarding and managing service contracts.

What the DOE purge conveniently overlooks is the urgent need for deeper due diligence, as political dummies still infiltrate the RE sector in borrowed suits, and some foreign investors may come wrapped in “green” promises, even if they operate from the shadows, their deals still reek of questionable dealings.

The energy department might argue that fly-by-night players won’t make it past the capital demands of the green energy auction (GEA) process, but that’s missing the forest for the cash: what if these so-called investors are just using RE as a glossy front to rinse dirty money in the Philippine RE market?

Some industry sources tipped off that one foreign solar developer eyeing a project in Central Luzon may be bringing in more than just panels, because his previous work had links to the infamous Malaysian 1MDB financial scandal—that’s via past dealings with shadowy shareholders of a global fund now funneling cash into RE projects.

Other sources similarly point to an RE executive whose wife’s business partner is under China’s microscope for money laundering; while whispers in the offshore wind industry also suggest another elusive investor (rarely seen at public forums)—that it’s supposed investment play may be less on clean energy focus; instead, the foreign firm may be quietly pumping money into the sector as a smokescreen for possible espionage tied to the West Philippine Sea standoff. Reports are likewise surfacing that “dirty cash” once soaked in the bloodsport of e-sabong and the shadows of the defunct POGO operations are being rechanneled into RE investments.

Deeper due diligence isn’t just a box to tick; it’s the firewall against rogue capital slipping through the cracks and maze of the country’s system of regulation and making sure the domestic RE market isn’t being used as a front for laundered cash, terrorist-linked funds, or any other forms of dark money.

Terrorist financiers and money launderers typically prey on energy markets hungry for investments, especially for countries dangling incentives for FDIs but still strapped with weak regulatory frameworks—and right now, parts of Africa, Latin America, as well as Asian markets—the Philippines included—are generally perceived as easy targets for these wolf-in-green-clothing investment schemes.

That said, calling an RE market “hot” can be wildly subjective, because some of the cash heating it up might just be “tainted capital” in disguise, primarily flowing in from suspicious sources that care less about green energy but more about cleaning their tracks.

Talks in energy circles last week further zeroed in on the plan of Energy Secretary Sharon Garin to bring in a designated Spokesperson for the DOE—someone to take the media scorch and polish the department’s public messaging; and the rumored pick is still currently working with another government agency and happens to be the son of a former party-list Congressman whose life was cut short by a tragic twist of fate.

Sources noted that bringing in a Spokesperson is just one piece of the ongoing shakeup at the DOE, as the new Secretary is now in the process of tightening the bolts for a new chain of command in the agency.

Last week’s announcement of the appointments of Undersecretaries Mylene Capongcol and Mario Marasigan—both institutional anchors and battle-tested—was seen as just the opening salvo in the DOE’s restructuring blitz, with more expected as new Assistant Secretaries may also join the ranks soon.

Rumors also swirled that a current executive from the country’s power spot market might be jumping ship to take a post at the DOE, but the executive and DOE sources are keeping their lips sealed on that speculated appointment.

There’s also guessing game on whether the heads of key attached agencies - like PSALM, Napocor as well as PNOC and its subsidiaries; would be shown the door or spared the axe; but in the middle of the hierarchy reset, industry insiders are betting solid that NEA Chief Antonio Mariano ‘Nani’ Almeda will likely stay in his post.

Another lingering industry backchannel noise is the purported delays in the execution of ACEN Corporation of the Ayala group on its once-headline-grabbing 20-gigawatt RE investment target for 2030; with insiders saying the pullback was already communicated to employees through a low-key town hall meeting months back.

Sources privy to the matter indicated there’s been a hard dose of reality setting in – with realization that aggressive RE rollouts could be slammed with real-world constraints like grid bottlenecks; funding concerns; the difficult chase for off-takes/power supply agreements; and a stretched-thin workforce struggling to keep pace with the overlapping implementation of projects not just in the Philippines but even in offshore markets.

Instead of doubling down on its 20GW ambition as a ‘hard target’ for 2030, ACEN is reportedly taking it now more of an aspirational investment growth trajectory, that if it happens, then it happens.