DOE seeks P24 billion penalties over canceled Solar Philippines contracts

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January 14, 2026 | 12:00am

MANILA, Philippines — The Department of Energy (DOE) is pursuing roughly P24 billion in penalties from Solar Philippines, founded by Batangas Rep. Leandro Leviste, following the termination of its 33 contracts over the past two years.

Energy Secretary Sharon Garin said Solar Philippines’ terminated deals account for more than 11,400 megawatts (MW), or about 64 percent of the total capacity of all renewable power service contracts terminated in 2024 and 2025.

“What we want are really legitimate investors that have the financial, technical and legal capacity to embark on a contract and an energy project in the Philippines. This is why we are cleaning it up,” Garin said at a press conference yesterday.

Garin said Solar Philippines, along with other developers whose contracts were terminated, failed to meet their contractual obligations and did not comply with the agreed project timelines.

Of the total capacity covered by Solar Philippines’ contracts, 1,370 MW had been awarded during the government’s first two green energy auction rounds.

“We actually have not received any response. We have consistently sent notices, even show-cause orders and requests, for them to renew their bonds. We have not received any response from the company,” the DOE chief said.

Leviste, who divested from some of his investments after being elected as congressman of Batangas’ first district, has yet to respond to The STAR’s request for comment.

Latest DOE data showed that 163 service contracts totaling nearly 18,000 MW were terminated and relinquished over the past two years. These include biomass, geothermal, hydro, solar and wind contracts.

“This could have actually covered the annual increase of our electricity demand in the country,” Garin said, noting that the DOE is set to implement a catch-up plan to keep the country on track with its renewable energy targets.

Under the Philippine Energy Plan, the government aims to increase the share of renewables in the power mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent.

As such, the DOE plans to reallocate the capacity from the terminated contracts to other developers.

For those noncompliant, the agency is considering filing civil, criminal or administrative cases against the developers behind these contracts, Garin said.

“The purpose is not to scare off investors. It is to ensure that we have the right investors in the Philippines. The DOE does not want fly-by-night (companies) or those that will just apply for a contract even if they do not yet have financing or even a clear project plan,” she added.