The Department of Energy (DOE) is seeking ₱24 billion in penalties from Levite-led Solar Philippines Power Project Holdings Inc. for failing to meet construction deadlines.

Energy Secretary Sharon Garin told reporters on Tuesday, Jan. 13, that the agency is moving to collect the funds following the termination of dozens of service contracts.

The ₱24 billion penalties comprise performance bonds, administrative obligations, and estimated project costs stipulated in the contracts, according to Garin.

The sanctions are tied to a broader sweep in which the department revoked 17,904 megawatts of capacity under service contracts through 2024 and 2025.

Solar Philippines, the holding firm founded by Batangas Rep. Leandro Leviste, accounted for 11,427 megawatts of that total, or about 64 percent of the terminated capacity. Most of the canceled projects were solar-related and located in Luzon, including those secured through the first two rounds of the Green Energy Auction.

Garin said the department issued show-cause orders to the company, but concerns remained unaddressed despite repeated communications.

In some instances, she said the developers failed to respond to government requests for progress reports entirely, prompting the mandatory cancellations. The final deadline for several of the affected projects was set for Dec. 25, 2025.

The enforcement drive aims to clear the development pipeline of “zombie” projects that have hampered the country’s transition to green energy.

By revoking these contracts, the government hopes to make prime land and resources available to more capable investors. Garin explained that the cleanup was a necessary step to remove “fly-by-night” developers and those hoarding contracts without the capacity to build.

The department is now evaluating whether to place the revoked areas under the Open and Competitive Selection Process, which would allow new bidders to take over the dormant sites. The government is currently grappling with a shortfall of 17 to 18 gigawatts of capacity from its green energy auction programs.

To prevent a recurrence of these failures, the energy department is planning to retrofit existing policies, ensuring that only viable investors with the necessary technical and financial backing secure long-term contracts.

Garin said that the crackdown is not intended to deter investment but to ensure that the country’s resources are utilized by developers capable of delivering power to the national grid.