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A price drop of ₱2 per kilowatt hour, from the current ₱4–₱5 range, would have been possible if Solar Philippines’ projects had materialised. This is what Department of Energy (DOE) Secretary Sharon Garin estimated upon the cancellation of 28 contracts from Batangas Representative Leandro Leviste’s Solar Philippines for failing to deliver on more than 11,000 megawatts (MW) worth of renewable energy.
“Had these cancelled contracts we awarded come in, the price would have gone down by at least two pesos by 2030,” she said, noting that the cancellations also raise the risk of more red alerts due to thin supply reserves.
Concerns Over ‘Flipped’ Energy Contracts
The issue has also reignited questions over the practice of “flipping”, where winning bidders for renewable contracts later sell them to other investors instead of completing the projects.
Garin and Justice Secretary Jesus Crispin “Boying” Remulla separately criticized such practices, with Remulla accusing Leviste of using his Solar Para sa Bayan franchise to benefit from deals with the Manila Electric Company (Meralco) group.
“The DOE should be like a disciplinarian. If we don’t go after them, nothing will happen to our country,” Garin said. “The future of our energy security rests on these companies. We don’t want firms that repeatedly fail to deliver or just sell their contracts.”
She added that some developers had previously secured service areas without owning the land or showing project readiness, only to later sell those contracts to foreign investors.
“They’re opportunists,” Garin said. “They just sell the contract because they know the Philippines is a popular destination for renewable energy investments.”
Tighter Screening for Future Bidders
In response, the DOE has tightened its prequalification rules, now requiring bidders to show land titles, grid clearance from the National Grid Corporation of the Philippines, and proven financing capacity before contracts are awarded.
Asked why Solar Philippines had initially qualified, Garin said the firm “passed evaluation, joined the auction, and won,” but ultimately failed to deliver most of its commitments. She told ABS-CBN News that Solar Philippines “cashed in” on some contracts by selling them to the Meralco group.
The DOE has issued multiple show-cause orders and extensions to the company, but Garin said Solar Philippines failed to respond, leading to contract termination. If the company does not pay the ₱24-billion fine, Garin said the government will file charges.
“It would be wrong not to go after them just because the owner is in a position of power,” she added.
The DOE plans to re-auction the terminated contracts to local and foreign investors “who can actually deliver.”
“There are many good companies,” Garin said. “We should only deal with firms that deliver, not flippers.”
Leviste Defends Record
In a statement posted online, Leviste said he was being targeted for political reasons, claiming he had been warned as early as September 2025 that cases would be filed against him for exposing the so-called “Cabral files.”
He defended his track record, saying his companies had developed the country’s largest renewable capacity and attracted significant foreign investment before 2025. He also claimed investment inflows have since declined due to political pressure.
A Cautionary Tale for Renewable Investors
The DOE’s crackdown on Solar Philippines highlights deeper challenges in the country’s renewable energy drive, chief among them enforcing accountability, curbing speculative bidding, and ensuring only credible developers can participate.
As the government races to increase renewable capacity to meet future demand, Garin said the DOE’s new measures aim to rebuild investor confidence while protecting consumers from the cost of failed projects.
Source:
https://newsinfo.inquirer.net/2169474/leviste-admits-ownership-of-power-firm-fined-by-doe
