1,350 MW in Renewable Capacity May Soon Open To New Investors

About 1,350 megawatts (MW) of renewable energy capacity under the government’s Green Energy Auction Program (GEAP) could soon be up for grabs as the Department of Energy (DOE) considers canceling stalled projects that have missed development milestones.

A combined 1,350 MW awarded to Solar Philippines Power Project Holdings Inc. (SPPPHI) and its subsidiaries has remained unbuilt, despite winning the largest share of contracts in the program’s first round. The company, owned by Solar Philippines founder and Batangas Rep. Leandro Leviste, secured these contracts across six GEAP-1 projects in 2021 and another 20 MW under GEAP-2.

The unused capacity is greater than GEAP-1’s 1,260-MW solar allocation and covers solar and wind projects in Tarlac, Nueva Ecija, Tayabas, Ormoc, General Santos, and Calatagan. All GEAP-1 projects were expected to begin power delivery by December 25, 2025, while the GEAP-2 facility was scheduled for December 2026. None has started construction.

Billions In Idle Projects

Under GEAP rules, winning bidders must maintain performance bonds equivalent to 20 percent of project cost per capacity. SPPPHI posted about ₱14.01 billion in bonds, which expired between August 1 and 2, 2024, without renewal. The lapse placed the company at risk of forfeiture and possible civil action.

Among the expired bonds were ₱988 million for the Concepcion Tarlac 2 project, ₱2.96 billion for General Santos, ₱4.45 billion for Kananga-Ormoc, ₱2.77 billion for Tayabas, ₱571 million for Calatagan Wind, and ₱1.98 billion for Santa Rosa Nueva Ecija 2. Only one GEAP-2 project—Santa Rosa Nueva Ecija 3—had a Notice of Claim filed.

From 2017 to 2022, SPPPHI and its subsidiaries received 42 renewable energy service contracts, but 24 have been terminated, relinquished, or abandoned. Seven GEAP projects and three non-GEAP developments remain non-compliant, leaving only nine operational.

Several large ventures, including the 1,200-MW Iba-Palauig and 1,680-MW Padre Garcia solar projects, were also canceled for failing to meet government work-program or permitting requirements.

DOE Ramps Up Purge of Inactive Contracts

The potential cancellations come as the DOE intensifies its cleanup of stalled renewable projects to attract new investors and free up capacity. Energy Secretary Sharon Garin said the department is “purging” non-performing contracts and issuing show-cause orders to developers who fail to advance beyond the pre-development stage.

“If it’s not moving, then they should not be holding those contracts,” Garin said, noting that due process is being observed before termination.

As of July 2024, the DOE had awarded 1,400 renewable energy service contracts totaling about 130 gigawatts (GW). Some have since been reassigned or terminated. Energy Undersecretary Mylene Capongcol earlier said the agency aims to streamline the termination process and reoffer canceled areas under the Open and Competitive Selection Process (OCSP), allowing other developers to bid for idle sites.

Investor Interest and Market Growth

Garin noted that the DOE’s actions have coincided with a rise in investor interest. During the Asia Clean Energy Summit in Singapore, she observed growing attention from regional firms seeking entry into the Philippine renewable sector.

“There are so many that want to invest,” she said. “We’re purging and trying to clean up stalled projects so that areas can be made available.”

DOE data show continued market expansion even as the agency prunes underperforming ventures. As of late October, the Independent Electricity Market Operator of the Philippines (IEMOP) reported new facilities entering the Wholesale Electricity Spot Market (WESM), including solar projects in Luzon and Mindanao, and several hydropower and battery storage systems undergoing commissioning.

The government targets renewable energy to make up 35 percent of the national power mix by 2030 and 50 percent by 2040, a goal it hopes to accelerate through stricter enforcement and reallocation of dormant projects.

Source:

https://tribune.net.ph/2025/12/10/stalled-projects-to-free-up-1350-mw-re-capacity

https://mb.com.ph/2025/12/03/doe-refines-competitive-bidding-to-revive-stalled-renewable-projects

https://mb.com.ph/2025/11/10/doe-purges-stalled-energy-contracts-to-free-up-130-gw-capacity