THE Department of Energy (DoE) on Sunday said it has undertaken initiatives for the prompt completion of renewable energy (RE) projects.
“The administration is committed to ensuring the efficient and timely execution of renewable energy projects by regularly assessing the progress of these projects and refining regulatory framework. If any contracts are deemed nonperforming, we will open them up to new developers who can effectively bring these projects into fruition,” Energy Undersecretary Rowena Cristina Guevara said in a statement.
“This strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals,” she pointed out.
Recently, the DoE released a revised set of omnibus guidelines which govern the awarding and administration of RE contracts and the registration of RE developers.
This has led to identifying at least 105 RE projects for termination due to noncompliance of contract terms. Majority of the contracts were awarded in 2017 and 2019.
Of the total, 88 are either delayed in their predevelopment timeline, or have not progressed at all.
Of the 88, 53 are solar energy projects; 17 hydropower; 10 wind; five geothermal and three biomass.
In the case of existing solar energy service contracts, the DoE said proponents have two years to complete the predevelopment phase which includes obtaining permits, conducting surveys, performing feasibility studies and securing possessory rights.
If a proponent fails to submit a project’s declaration of completion or does not demonstrate reasonable efforts within a timeframe, the DoE-Renewable Energy Management Bureau will issue a show-cause order to request an explanation for the delay. The project will then be terminated if explanations are deemed insufficient.
The revised omnibus guidelines have likewise given RE project developers time to improve their work program. This includes obtaining a certificate of authority before signing the contract.
The DoE has streamlined the process of granting permits through its Energy Virtual One-Stop Shop System.
“Moving forward, these streamlined procedures are designed to promote investments in the renewable energy sector by reducing bureaucratic hurdles and avoidance of service contract termination, ultimately supporting our country’s transition to a more sustainable energy landscape,” Guevara said.
As of June, the DoE has awarded 1,435 RE service contracts with a total potential capacity of over 156,700 megawatts (MW).
Some 6,100 MW from the service contracts have been installed.
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