The Department of Energy (DOE) says that around 105 renewable energy projects are under review for possible termination due to non-compliance with project schedules, including several contracts awarded in 2017 and 2019.
“Around 105 renewable energy projects are under review for possible termination due to non-compliance with project schedules, including several contracts awarded in 2017 and 2019,” the DOE said in a statement.
The department cited several common factors behind project delays, such as difficulties in securing possessory rights or system impact studies (SIS) indicating the inability to connect to the grid.
Among the total of 105 projects, 88 are experiencing delays in their pre-development stages or are not advancing at all. This group comprises 53 solar projects, 17 hydropower projects, 10 wind projects, five geothermal projects, and three biomass projects.
In June 2024, the DOE released the revised omnibus guidelines, which govern the award and administration of renewable energy contracts and the registration of renewable energy developers.
The guidelines stipulate that if a developer fails to submit the declaration of completion (DOC) or show reasonable efforts within the designated timeframe, the DOE-Renewable Energy Management Bureau (REMB) will issue a show-cause order requesting an explanation for the delay.
If valid reasons, such as force majeure, are provided, an extension may be granted. Conversely, if the explanations are deemed insufficient or the developer does not reply, the REMB will recommend the termination of the contract to the Secretary of Energy.
Additionally, the developer must meet all financial obligations outlined in the service contract, including performance bonds and payments for training commitments and development assistance.
The updated omnibus guidelines present new opportunities for developers to enhance their work programs. One key change is the mandate to obtain a certificate of authority (COA) prior to entering into 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.
As of June 2024, more than 1,435 service contracts had been awarded to renewable energy developers, with a combined potential capacity surpassing 156,700 megawatts (MW). Out of this total, 6,100 MW have already been installed.
