Over 50 solar projects in the Philippines are in danger of not meeting their deadlines, putting the country's renewable energy goals at risk. Failure to complete these ventures could result in termination. Stay informed to understand its impact.
The Philippines' Department of Energy (DOE) has announced that at least 53 solar energy projects, part of a broader group of 105 renewable energy projects, are facing potential termination due to a failure to meet scheduled deadlines. These projects, most of which were signed between 2017 and 2019, have either stalled during the preparatory stage or shown no significant progress.
According to the DOE, common issues causing the delays include difficulties in acquiring land rights and completing grid connection studies. Under the terms of current solar contracts, developers are given two years to complete preparatory work, which includes obtaining permits, conducting feasibility studies, and securing land rights. If developers fail to demonstrate significant progress or complete this work within the stipulated timeframe, the Renewable Energy Management Bureau (REMB) issues a "show cause" order, requiring developers to explain the reasons for the delays.
Should the explanation be deemed unsatisfactory, or if developers fail to respond, the REMB will recommend terminating the contract to the Secretary of Energy. Developers are also required to fulfill all financial obligations under the service contract. The DOE notes that if delays are caused by unforeseeable events, such as force majeure, project timelines may be extended.
DOE Undersecretary Rowena Cristina Guevara emphasized the government's commitment to improving regulatory oversight and ensuring the efficient execution of renewable energy projects. She also noted that if any contracts are canceled, new developers capable of completing the projects will be brought in.
Earlier this year, the DOE revised its guidelines for managing renewable energy contracts and developer registration to weed out non-performing developers. These updated guidelines allow developers who have obtained a Certificate of Authorization (CoA) to apply for necessary permits and conduct preliminary feasibility studies before signing a formal 25-year service contract. CoAs for floating and land-based solar projects are valid for two years and one year, respectively.
The DOE is also streamlining the approval process through its virtual one-stop service system for energy projects. As of May, the DOE projected that nearly 2 GW of solar projects could enter the power generation stage. By early October, the department had approved 29 utility-scale solar projects. The Philippines aims to install 15 GW of clean energy capacity by 2030, with solar power capacity reaching 1,675 MW by the end of 2023.