The Department of Energy (DOE) has begun to terminate contracts for renewable energy projects that fail to meet its work timelines.
Energy Undersecretary Rowena Cristina Guevara announced that several projects have already been terminated, with notices sent to developers of the initial 105 projects under review.
Among the 105 RE projects at risk of termination, 88 are either stuck in their pre-development phases or showing no progress, DOE data revealed. However, the government has not disclosed the identities of the developers behind these projects.
Guevara added that the DOE is conducting a second review to identify additional delayed projects.
Terminated service contracts will be offered to new developers with the capability to move the projects forward. Guevara emphasized that unproductive projects must be cleared to allow these areas to be reassigned.
Developers of inactive projects, however, are allowed to appeal the termination decisions by filing a motion for reconsideration, Guevara clarified.
Energy Secretary Raphael Lotilla underscored the importance of this move, stating it would attract more committed investors to the renewable energy sector.
To date, the DOE has awarded more than 1,400 RE service contracts. This initiative supports the government’s goal of increasing the share of renewables in the energy mix to 35 percent by 2030 and 50 percent by 2040, up from the current 22 percent.
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