The Department of Energy (DOE) is pursuing around PHP 24 billion in penalties and financial obligations from renewable energy developer Solar Philippines Power Project Holdings Inc. (SPPPHI) after terminating over 11,000 megawatts (MW) of awarded renewable energy contracts linked to the company for failure to comply with project commitments, Energy Secretary Sharon S. Garin said on Tuesday.

Garin said the penalties cover performance bonds, contractual obligations, and other required payments, including training and development funds, that developers are required to settle when projects fail to move forward as committed. She said the enforcement action is part of the DOE’s broader effort to clean up stalled and non-performing renewable energy projects.

SPPPHI was founded by Leandro S. Leviste, a businessman-turned-politician and current lawmaker. The company has been one of the country’s most active solar developers, holding a large number of renewable energy service contracts awarded under government programs over the past decade.

The DOE’s action against SPPPHI has also renewed attention on Solar Para Sa Bayan Corporation, a separate company linked to Leviste that holds a 25-year congressional franchise to build and operate microgrids in unserved and underserved areas. While both firms are associated with Leviste, the DOE has said SPPPHI and Solar Para Sa Bayan are distinct entities, with SPPPHI primarily involved in large-scale power projects covered by renewable energy service contracts.

Solar Para Sa Bayan, for its part, is facing a separate issue, as the company is currently under investigation by the Office of the Ombudsman over matters related to its congressional franchise—an issue that the DOE has said is not connected to the termination of SPPPHI’s renewable energy service contracts.

In an earlier report by Power Philippines, SPPPHI’s failure to deliver on several government-awarded projects was estimated to have tied up as much as 1.35 gigawatts (GW) of renewable energy capacity under various DOE programs. The report said these stalled projects could potentially be reopened to other developers once the contracts are formally cleared.

Garin said the DOE had issued multiple notices and show-cause orders over several months, but the company did not respond.

“We will pursue this obligation… the imposition of this obligation to all the developers who are supposed to pay for this,” Garin told reporters.

She added that the crackdown is meant to remove non-performing developers and make room for more capable investors. “What we want are legitimate investors, that’s why we’re cleaning it out,” Garin said.

The terminated contracts form part of a wider review of renewable energy projects awarded in recent years, as the DOE seeks to ensure that approved developments translate into actual power supply for the grid.

How will the DOE’s tougher enforcement approach reshape investor behavior and the pace of renewable energy development in the Philippines?

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