The Department of Energy (DOE) is taking steps to address renewable energy projects under the Green Energy Auction (GEA) program that have failed to meet their committed delivery timelines.
In a statement Thursday, the DOE reminded developers that under the GEA rules and revised renewable energy guidelines, the government may forfeit performance bonds and terminate contracts—after due process—if obligations are not met.
The assurance came after reports that Solar Philippines Power Project Holdings Inc. and its subsidiaries risk losing their GEA contracts and face over ₱14 billion in performance bond forfeiture for not delivering 1,350 megawatts of committed capacity on time.
The DOE stressed that non-performing projects will be removed from the development pipeline to prevent delays in the country’s clean energy transition. Their capacities, it said, will be opened to other qualified developers.
While the agency declined to discuss specific cases, it emphasized that all developers are treated equally and that it is prepared to coordinate with the Philippine Competition Commission or other relevant authorities when needed.
Under the GEA scheme, developers compete for fixed, incentivized power rates by offering bids at or below reserve prices set by the Energy Regulatory Commission. Eligible projects must meet their target completion dates to keep these incentives.
