Meralco PowerGen Corp. (MGen) said SP New Energy Corp. is not liable for penalties tied to the recent government crackdown on idle renewable energy contracts, distancing its subsidiary from a multibillion-peso fine levied against its previous management.

In a statement, the power generation arm of Manila Electric Co. clarified that SPNEC will not be responsible for paying the ₱24-billion penalty for failing to meet construction deadlines. The statement follows the Department of Energy’s (DOE) move to purge non-performing renewable energy service contracts, a sweep that heavily impacted projects previously held by Solar Philippines Power Project Holdings Inc., led by Leandro Leviste.

MGen, through its renewable energy unit MGen Renewable Energy Inc., assumed a 57.33 percent controlling stake in SPNEC in 2023. While Leviste’s Solar Philippines retains a 16.30 percent stake, MGen has since taken over management and operational control.

The firm noted that only SPNEC’s 280-megawatt Sta. Rosa solar project was affected by the terminations, a small fraction of the nearly 12,000 megawatts of canceled contracts linked to Leviste’s holding firm.

The DOE reported last week that it had canceled 11,427 megawatts of contracts belonging to the Leviste-led firm, accounting for approximately 64 percent of the total capacity terminated in 2025.

The department issued show-cause orders prior to the cancellations, citing a lack of progress in project development.

MGen said the former management of the Sta. Rosa project had secured the 280-megawatt capacity during the government’s first Green Energy Auction Program.

The project filed a notice of force majeure with energy regulators last year, citing circumstances beyond its control that prevented it from meeting a December 2025 completion target.

In contrast to the stalled Sta. Rosa development, MGen Renewables said it has completed its own solar obligations under the second round of the Green Energy Auction ahead of schedule. The 19.8-megawatt Bongabon solar project in Nueva Ecija was finished six months early, while the 52.8-megawatt Cordon solar plant in Isabela was completed four months ahead of its target date.

MGen currently operates 400 megawatts across seven solar sites and is developing the 3,500-megawatt MTerra Solar project, which includes a 4,500-megawatt-hour battery energy storage system.

Beyond its renewable portfolio, MGen maintains significant interests in thermal and gas energy through subsidiaries such as MGen Thermal and Singapore-based PacificLight Power. The company also holds a 40.2 percent stake in an integrated liquefied natural gas project in Batangas.