More than 100 Philippine renewable energy projects risk termination

The Philippine Department of Energy (DOE) has alarmed that at least 105 renewable energy projects face potential termination due to non-compliance with project timelines, with most delays attributed to difficulties in securing possessory rights or challenges in connecting to the power grid.

The majority of these contracts were awarded in 2017 and 2019.

Out of the total projects at risk, 88 were either delayed in their pre-development timeline or have not progressed at all. This includes 53 solar, 17 hydro, 10 wind, five geothermal and three biomass projects.

The Philippine government noted in the statement that it is committed to ensuring the timely execution of the projects by regularly monitoring their progress and refining the regulatory framework.

“If any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition. This strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals," energy undersecretary Rowena Cristina Guevara said in the statement published over the weekend.

The revised omnibus guidelines have introduced new opportunities for developers to improve their work programmes. One significant change is the requirement to obtain a certificate of authority (COA) before signing a renewable energy contract.

The COA is valid for five years for offshore wind projects, three years for biomass, geothermal, hydropower, ocean and onshore wind projects, two years for floating solar, and one year for land-based solar projects.

The target of the Philippines is to achieve 35% of renewables in its energy mix by 2030 and 50% by 2040.

At least 1,435 service contracts with a total potential capacity of more than 156,700 MW had been awarded as of the end of June, with 6,100 MW of these service contracts already been installed, the government said.

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