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Manila Bulletin devider Business devider Trade & Industry devider Energy chief moves to shut 40 defiant power plants

Energy chief moves to shut 40 defiant power plants

Published Aug 24, 2026 12:01 am  |  Updated Aug 22, 2026 03:13 pm
The Department of Energy (DOE) is preparing to push around 40 underperforming and non-compliant power plants toward a forced operational shutdown amid crackdown aimed at stabilizing persistent grid strain in Visayas and Mindanao.
Energy Secretary Sharon Garin said the agency will formally recommend suspensions to the Energy Regulatory Commission (ERC), targeting delinquent operators that ignored previous administrative warnings regarding unannounced service disruptions and capacity shortfalls.
The targeted facilities consist primarily of small-scale diesel-fired units. According to Garin, approximately 10 of the generation assets earmarked for suspension are already non-operational, yet continue to complicate grid management and compliance accounting.
The standard enforcement push builds on a sweeping regulatory audit conducted under Department Circular No. DC2026-02-0006, an accountability framework mandating that power producers operate exclusively with fully active permits, clearances, and operational certifications.
In July, the DOE issued 174 show-cause orders to on-grid generation facilities alongside 29 notices to off-grid operators.
Operators were instructed to provide formal legal justifications for failing to meet mandated operational performance and timely reporting schedules, or face formal criminal and administrative penalties.
Compliance remains severely fragmented in the sector. Only 37 on-grid facilities met the filing conditions outlined in the notices, while five operators petitioned regulators for deadline extensions. A total of 114 on-grid generation facilities failed to issue any response to the government, triggering the current phase of punitive regulatory actions.
Facilities that fail to maintain required compliance metrics face the potential revocation of their Certificate of Endorsement from the ministry, alongside recommendations for the ERC to cancel their Certificate of Compliance.
The DOE holds additional powers to levy administrative fines, blacklist repeat offenders, and bar non-compliant firms from participating in upcoming competitive selection processes, power auctions, and government award programs.
To bridge generation gaps created by aging fossil infrastructure, particularly across island grids, the government is accelerating a transition toward renewable alternatives. Authorities are structuring a Green Energy Auction specifically for areas managed by the National Power Corp.
The program aims to replace high-cost diesel units with renewable capacity integrated with battery energy storage systems, launching across an initial rollout of 20 off-grid islands.
Consultations remain ongoing with private sector energy developers, local government units, and regional distribution partners to establish final framework terms.

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