DOE prepares 10-year green energy plan after purging 'zombie' projects
The Department of Energy (DOE) is preparing a fresh wave of renewable energy auctions to replace nearly 18 gigawatts of stalled projects, signaling a more aggressive stance toward developers that fail to meet construction deadlines.
Energy Secretary Sharon Garin said at the “Big Bold Reforms” Economic Forum in Manila that the agency is finalizing a 10-year master plan for the Green Energy Auction Program (GEAP), with a formal announcement expected in March.
The move follows the termination of 163 service contracts through 2024 and 2025 that were deemed “non-performing” by regulators.
The sweep of cancellations removed 17,904 megawatts of potential capacity from the national pipeline. Solar Philippines Power Project Holdings Inc., founded by Leandro Leviste, accounted for 11,427 megawatts, or roughly 64% of the revoked capacity.
The government is now seeking approximately ₱24 billion in penalties from Solar Philippines to cover performance bonds and contractual obligations.
Garin said the cleanup was necessary to clear the development pipeline of “zombie” projects and make prime resources available to more capable investors.
She said that the enforcement drive is not intended to deter investment but to ensure that awarded areas are utilized by developers with the technical and financial backing to deliver power to the grid.
A central component of the 2026 agenda is the country’s first competitive bidding for offshore wind. The DOE plans to auction 3.3 gigawatts of fixed-bottom offshore wind capacity, with projects slated for delivery between 2028 and 2030.
The Energy Regulatory Commission has set a preliminary Green Energy Auction Reserve price of ₱10.3859 per kilowatt-hour for the technology, the highest ceiling price ever set for a domestic renewable auction.
Beyond wind, the DOE is readying “GEA-6,” a specialized auction for 170 megawatts of waste-to-energy projects. This round will target five specific lots across Metro Manila, the Visayas, and Mindanao.
Additional auctions planned for later this year include "GEA 4.5," which will bid out remaining capacities from previous rounds, and niche auctions for solar developments in agrarian reform areas and agricultural sites.
The latter is being developed in partnership with the Department of Agriculture to integrate solar technology with aquaculture and farming.
The government aims to increase the share of renewable energy in the Philippines' power mix to 35 percent by 2030 and 50 percent by 2040.