The Department of Energy (DOE) has taken a firm stance on accountability, cancelling a significant number of renewable energy service contracts this year. The agency terminated 84 contracts in 2025 after developers repeatedly failed to meet their commitments.
Massive Capacity Loss and Reasons for Termination
In a press release dated Wednesday, December 24, 2025, the DOE revealed the staggering scale of the cancelled projects. These contracts represented an estimated 5,372.209 megawatts (MW) of potential power capacity. This figure had previously been included in the nation's official energy planning, meaning its loss creates a substantial gap in future supply projections.
The terminations followed a detailed review process. The DOE cited several critical failures by the developers, including:
- Non-compliance with their contractual work program requirements.
- Failure to satisfy the terms of the Green Energy Auction Program (GEAP).
- Non-adherence to the established standards and regulations of the DOE.
The department emphasized that these decisions were not made lightly. They resulted from a comprehensive technical and legal evaluation of each project's compliance with the material conditions of their service contracts.
Ongoing Reviews and Future Sanctions
The cleanup is not over. The DOE disclosed that 43 other renewable energy projects are currently under an enforcement review. These projects also face potential termination if found non-compliant.
To prevent future issues, the agency warned of stricter measures. For upcoming rounds of the GEAP, the DOE stated it will continue to uphold high standards and is prepared to impose stronger penalties. These sanctions could include:
- Blacklisting of erring developers.
- Forfeiture of performance bonds.
- Application of other financial and legal penalties.
Impact on Energy Planning and Official Stance
With a major portion of expected capacity now void, the DOE is forced to recalibrate its plans. The agency announced it is actively revisiting supply-demand scenarios and conducting further system planning. The goal is to determine the necessary steps to still meet the country's established generation targets.
Energy Secretary Sharon Garin underscored the department's uncompromising position. "Renewable energy development must be fast, but it must also be accountable," Garin said. "The DOE will not compromise on contract discipline. Service contracts are performance commitments, and renewable energy projects must deliver real, reliable power for Filipino consumers."
This sweeping action signals a major shift towards enforcing rigor and delivery in the Philippines' crucial push for renewable energy expansion.
