The Department of Energy (DOE) is increasing their efforts to remove ill-performing renewable energy (RE) developers by enforcing stricter oversight and exploring new mechanisms to reassign stalled projects.

According to an article by the Manila Bulletin, Energy Assistant Secretary Mylene Capongcol said the DOE is closely monitoring delayed RE developments, especially those inactive for more than three years. These projects may be placed under the Open and Competitive Selection Process (OCSP), which awards new service contracts through a strategic bidding process.

“We’re active now in monitoring termination. We’re enforcing dues on projects that have been dormant for too long, so we’ll have to wake them up,” Capongcol told reporters. “Usually, our general policy is if it’s terminated or relinquished, we do the OCSP.”

However, Capongcol noted that the existing OCSP framework, particularly for solar energy, is a lengthy process. The DOE is now considering a more streamlined alternative that would publicly declare terminated areas open to new developers without requiring a full OCSP cycle.

Solar projects are typically granted a two-year pre-development window. Developers that fail to submit a declaration of completion or show tangible progress may receive a show-cause order from the DOE’s Renewable Energy Management Bureau (REMB). While projects affected by force majeure may be granted extensions, those with insufficient justification will face contract termination.

Capongcol reported that there are around 1,400 RE service contracts currently awarded, representing a total capacity of approximately 130 gigawatts. Some of these contracts have already been revoked.

“We should be able to at least remove the barriers in the RE development, so that we can make use of the available space and increased capacity,” she said. “We’re not saying RE will solve everything as far as the power supply is concerned, but it can help sustain our indigenous supply.”

To support future reassignments, the DOE is developing a digital platform to connect terminated project areas with potential private sector partners. This system is expected to enhance transparency and efficiency in the reassignment of relinquished RE areas.

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