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Manila Bulletin devider Business devider Trade & Industry devider DOE purges stalled energy contracts to free up 130-GW capacity

DOE purges stalled energy contracts to free up 130-GW capacity

Published Nov 10, 2025 12:01 am  |  Updated Nov 10, 2025 08:31 am
Energy Secretary Sharon Garin
Energy Secretary Sharon Garin
The Department of Energy (DOE) said the agency is actively terminating sluggish renewable energy (RE) contracts to free up space and attract new investments.
Energy Secretary Sharon Garin said the department is “purging” service contracts that were awarded but have yet to advance from the pre-development to the development stages.
“We’ll continue to purge. We’re just giving them the due process, the notice, the show cause orders, and all that,” Garin told reporters. “If it’s not moving, then they should not be holding those contracts.”
As of July, the DOE had awarded 1,400 RE service contracts totaling 130 gigawatts (GW). Some of these contracts have already been granted to developers or terminated.
Energy Undersecretary Mylene Capongcol earlier stated that the government plans to streamline the termination process and place idle developments under the Open and Competitive Selection Process (OCSP). The initiative allows these service contracts to be rebid to other interested developers.
Citing her observations from the Asia Clean Energy Summit (ACES) in Singapore, Garin noted that the growing number of stakeholders and companies is considering the Philippines for future RE investments.
“There are so many that want to invest, and we’re telling them we’re purging and trying to clean up [the stalled projects], and there will be other areas that are more interesting [but] are not moving,” she said.
Last month, Energy Undersecretary Rowena Guevara said that the entry of foreign investors has already expanded the country’s RE capacity, a significant step toward achieving a 35 percent RE share of the power mix by 2030 and 50 percent by 2040.
The DOE’s report indicated that 13 solar contracts, worth 1,297.5 megawatts (MW), 53 onshore wind contracts, and nine offshore wind contracts, amounting to 13,183.95 MW, have been awarded. The DOE has not yet disclosed the total number of contracts terminated this year.
Even as the government prunes delayed projects, the Independent Electricity Market Operator of the Philippines (IEMOP) reported that more facilities have begun entering the Wholesale Electricity Spot Market (WESM).
As of Oct. 26, three solar projects in Luzon and Mindanao have started commercial operations, while three other solar facilities completed their testing and commissioning phase.
Other facilities that completed testing and commissioning include the 4 MW Colasi mini hydroelectric power plant in Luzon. The Bago Binary geothermal plant is currently undergoing testing and commissioning. Furthermore, two battery energy storage system (BESS) projects are pending operation startup, and two conventional power plants are in the testing and commissioning stage. These identified projects are expected to contribute to the current supply margin.

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