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Manila Bulletin devider Business devider DOE: Project terminations will open doors for capable RE developers

DOE: Project terminations will open doors for capable RE developers

Published Jan 8, 2025 07:11 am

Following the termination of multiple renewable energy (RE) projects last year, the Department of Energy (DOE) assured the public that this action would not discourage investors from pursuing renewable energy developments.

In a briefing on Wednesday, Jan. 8, DOE Secretary Raphael P.M. Lotilla said that terminating these projects would open opportunities for those more capable of advancing their assets.

“[The termination] would encourage more serious investments in the RE sector. There are commitments and so if they are not able to move then the others who have the technical, the legal, and the financial capability should be given an opportunity to develop the same," he told reporters.

"They become idle assets in so far as our people are concerned if they are not developed," he added.

Last October, the DOE terminated 105 RE projects, most of which were still in the pre-development stage. Many were solar projects, with the remainder comprising hydropower, geothermal, and biomass.

DOE Undersecretary Rowena Cristina Guevara noted that some developers might still seek reconsideration.

"We have almost finished sending out the letters for the first batch. But some might request reconsideration. That is possible," she said. "Even though we have issued the first batch, we are still reviewing to ensure no further projects are delayed. If we find any, we will issue another round of termination notices."

According to Guevara, over 1,400 RE service contracts have been awarded. The second batch of projects slated for termination is yet to be disclosed.

"We want to ensure that stalled projects are removed so others can apply for those areas. But we cannot open those areas unless we terminate the existing projects," she explained.

Guevara emphasized that contract termination is not a simple process. The DOE is reviewing reconsideration requests, and the submission period is ongoing.

"Before we terminate a contract, we must verify the reported project completion stage. It's a complex process," she added.

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