DOE cancels 84 stalled power projects in 2025
Energy Secretary Sharon S. Garin
The Department of Energy (DOE) has finally put its foot down and revoked 84 renewable energy (RE) service contracts this year, citing several developer violations.
In a statement on Wednesday, Dec. 24, the DOE said the contracts were canceled after developers failed to meet their contractual obligations, such as non-compliance with work program requirements, failure to fulfill the terms of reference (TOR) under the Green Energy Auction (GEA), and violations of DOE standards, among others.
“Under its strict enforcement drive in 2025, the DOE has terminated eight additional RE service contracts,” it said, bringing the total number of revoked contracts to 84 for the entire year.
These terminated contracts affected 5,372.209 megawatts (MW) of supposed capacity that had previously been included in the country’s energy planning.
Furthermore, 42 other projects may be up for termination but are currently under enforcement review.
Energy Secretary Sharon Garin stressed that RE developments must proceed swiftly and that developers should be held accountable.
“The DOE will not compromise on contract discipline. Service contracts are performance commitments, and RE projects must deliver real, reliable power for Filipino consumers,” she said.
Because of the terminated contracts, the agency has been re-evaluating supply-demand scenarios and is undertaking system planning to determine the next steps needed to help meet generation targets. The DOE is aiming to reach 35-percent renewables by 2030 and 50 percent by 2040.
Moving forward, the DOE said it may impose further sanctions, such as blacklisting developers, forfeiture of performance bonds, and other necessary penalties for non-compliance. These measures are intended to uphold the standards of the RE bidding process initiated by the agency and ensure projects are aligned with the terms and conditions of their awarded contracts.