Renewable energy (RE) developers urge the Department of Energy (DOE) to establish clear criteria when terminating non-performing service contracts.
In a report by Manila Standard, Developers of Renewable Energy for AdvanceMent (DREAM) president Jay Layug and Philippine Solar and Storage Energy Alliance (PSSEA) chair Tetchi Capellan shared sentiments, saying that the DOE’s recent efforts are appreciated, however, they called to consider the delays from the non-action of government agencies.
Earlier, the DOE announced its plans to terminate 105 renewable energy (RE) projects due to missed project timelines, which would open opportunities for other developers to gain access to the grid.
Capellan backed the energy department’s efforts to assess and cancel non-performing contracts but there should be specific guidelines on what constitutes non-performance, particularly when government agency delays are the cause.
Layug echoed these sentiments, noting that while the private sector appreciates the DOE’s efforts to streamline RE development, the agency should apply a nuanced approach as only contracts that lack any pre-development activity or permit acquisition should be terminated.
Additionally, Layug stressed that delays due to insufficient transmission capacity at the target date should be treated as force majeure, and its contract timeline should be adjusted.
Meanwhile, MERALCO PowerGen Corporation (MGen) welcomed the DOE’s plan, viewing it as an important step forward in meeting renewable energy requirements.
MGen president Emmanuel Rubio pointed out that many of these delayed projects were supposed to contribute to the renewable energy portfolio standards (RPS), adding that DOE should find ways to fill the resulting gap.
Most of these non-performing contracts date back to 2017 and 2019, with delays often resulting from difficulties securing possessory rights or completing system impact studies (SIS), which are essential for grid connectivity.
