Revival of 163 scuttled energy projects still uncertain
The government expects fresh investments to flow in after terminating over 160 renewable energy deals. However, an analyst said unresolved execution risks could deter investors.
Energy Secretary Sharon Garin is confident that the mass cancellation of idle projects will pave the way for developers with technical muscle and deep pockets to build the facilities.
“The purpose is not to scare off investors. It’s to make sure that we have the right investors in the Philippines,” Garin said last week.
Toby Allan Arce, head of sales trading at Globalinks Securities and Stocks, Inc., also believes the country can “reasonably expect renewed renewable energy investment interest.”
However, this would depend on new rules and how fast the agency moves after scrapping 163 service contracts, Arce said.
In 2025 alone, the Department of Energy (DOE) culled 84 projects amid a crackdown on developers that failed to meet contractual and regulatory requirements.
“Investors will closely watch how quickly and fairly the terminated contracts are rebid, whether grid connection and permitting issues are addressed and whether timelines are realistic,” he told the Inquirer.
“If the process becomes protracted or inconsistent, the positive signaling effect of enforcement could be diluted, turning discipline into perceived uncertainty instead,” Arce added.
Energy officials are looking into making some of the contracts available through an open and competitive selection process.
Prequalification process
The analyst said the government must boost its prequalification process, including imposing stricter requirements to weed out speculative players.
After awarding the contract, he also suggested including penalties and incentives based on the DOE’s “milestone-based monitoring.”
“[This] can encourage steady progress while allowing flexibility for genuine delays,” he said.
The DOE is also urged to address common challenges facing the industry, such as the tedious permitting processes and transmission delays.
Garin gave assurance that the agency was already studying tougher guidelines. These may include banning “unserious” developers from participating in DOE bidding activities.
The energy chief also warned that the government could bring the matter to court.
“We will file whatever cases we have to file, whether it’s civil, criminal, administrative or if there’s any anticompetitive behavior, we will do so,” she said.
