Energy dep’t preparing to terminate 105 RE projects

AT LEAST 105 renewable energy (RE) projects may be offered to new developers, with the Department of Energy (DoE) working on the cancellation of the original contract awards due to failure to meet project timelines.

“If any contracts are deemed non-performing, we will open them up for new developers who can effectively bring these projects into fruition,” Energy Undersecretary Rowena Cristina L. Guevara said in a statement on Sunday.

“This strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals,” she added.

Most of the contracts were awarded in 2017 and 2019, with the reasons for the delays including failure to secure rights or system impact studies indicating an inability to connect to the grid.

Of the total, 88 are either delayed in the pre-development stage or making no progress at all. They include 53 solar, 17 hydropower, 10 wind, five geothermal, and three biomass projects.

With at least 1,435 service contracts awarded as of June, the renewable energy industry is poised to introduce more than 156,700 megawatts (MW) of capacity. About 6,100 MW has been installed.

The government hopes to increase the share of RE in the generation mix to 35% by 2030 and 50% by 2040.

Ms. Guevara said the government is committed to “ensuring the efficient and timely execution of renewable energy projects by regularly assessing the progress of these projects and refining regulatory framework.” 

In June, the DoE released the revised omnibus guidelines, which govern the award and administration of RE contracts and the registration of RE developers.

“This process helps to identify and filter out non-serious developers, paving the way for legitimate developers committed to constructing renewable energy projects efficiently,” the DoE said.

Under the revised guidelines, developers are required to obtain a certificate of authority (CoA) before signing an RE contract. This allows them to start permit processing, conduct surveys and pre-feasibility activities even before the official 25-year contract terms begin.

“By allowing these activities to take place earlier, developers can better prepare for project implementation and address potential challenges proactively,” the DoE said.

The CoA’s validity period depends on the project type, with offshore wind projects granted five years and biomass, geothermal, hydropower, ocean and onshore wind projects three years.

The certificates that will be granted for floating solar and land-based solar projects are valid for two years and one year, respectively.

The DoE is also streamlining the permit processes through its Energy Virtual One-Stop Shop System or EVOSS.

“These streamlined procedures are designed to promote investments in the renewable energy sector by reducing bureaucratic hurdles, and avoidance of service contract termination, ultimately supporting our country’s transition to a more sustainable energy landscape,” Ms. Guevara said. — Sheldeen Joy Talavera