Purge of dormant renewable energy projects tipped to widen

FILE PHOTO: Department of Energy (DOE) facade. Images from DOE / INQUIRER FILES

The government continues purging “unserious” renewable energy developers, with more projects up for potential termination, but the Department of Energy (DOE) is confident this will trigger more investments in the sector.

In a media briefing in Taguig City, Energy Undersecretary Rowena Cristina Guevara said the DOE was reviewing another batch of idle or delayed clean energy projects.

Guevara declined to disclose more details on the fresh group of projects under review.

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“Even though we have already issued the first batch, we are still doing another review to make sure that there are no more projects that are delayed. And if there are, then we will again write termination,” she said.

“We want to make sure that those that are not moving can be removed. And therefore, others can actually apply for those areas but we cannot open those areas unless you terminate the projects that have been assigned to those areas,” she added.

Guevarra noted that, currently, the government has more than 1,400 renewable energy service contracts.

The DOE announced late last year its crackdown on about 105 proponents that failed to launch their clean power projects on schedule.

Guevarra confirmed that the DOE has already “terminated some.” Even then, the revival of these projects remains a possibility.

“The first 105, we have almost finished sending out the letters. But you know that some of them might go for a request for consideration. So that is possible,” she said.

Asked if this move could dampen further investments in the market, Energy Secretary Raphael Lotilla was firm that the agency’s position could “in fact, encourage more serious investments in the renewable energy sector.”

“There are commitments and so if they are not able to move then the others who have the technical, the legal, and the financial capability should be given an opportunity to develop the same. They become idle assets insofar as our people are concerned if they are not developed,” Lotilla said.

Sought for his insights, Jose Layug Jr., president of Developers of Renewable Energy for Advancement Inc., backed the strategy of the DOE “as long as the termination has justifiable grounds…”

“If these are non-moving service contracts, the areas previously awarded would be freed up for other investors to apply and finally develop the projects,” Layug told Inquirer.