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The Department of Energy (DOE) said penalties amounting to about ₱24 billion imposed on Solar Philippines Power Projects Holdings Inc. remain unpaid, as the agency maintained that its cancellation of nearly 12,000 megawatts (MW) in renewable energy contracts awarded to the firm is final.
Energy Secretary Sharon Garin said the department has yet to receive payment or compliance from Solar Philippines, founded by Batangas Representative Leandro Leviste, following the issuance of a demand letter weeks ago.
“As far as the DOE is concerned, this is final already… so if they don’t pay, then we take it to the legal recourse that we have,” Garin told reporters during the Renewable Energy Investment Forum in Taguig City.
No Response
The DOE in January imposed approximately ₱24 billion in penalties after terminating thousands of megawatts worth of renewable energy service contracts due to the company’s alleged failure to deliver on its commitments to produce nearly 12 gigawatts (GW) of capacity.
According to Garin, the settlement period is about one month from the issuance of the demand letter. “I think it’s one month after the demand letter [was sent]… It was sent about weeks ago, so it should be settled within this month,” she said.
The penalties cover performance bonds, contractual obligations, the supposed cost of the projects, and financial commitments for training and development funds and other obligations under the contracts. The DOE earlier said Solar Philippines accounted for 12,000 MW of the 17,000 MW in power generation contracts that were cancelled.
Garin said the agency has consistently sent notices, show cause orders, and requests for the company to renew its performance bonds, but has not received any response. “We have not received any response from the company nila sa DOE, dun sa performance bond nila na kailangan nilang bayaran (from their company to the DOE, regarding the performance bond that they need to pay),” she said.
Legal Options
With the fines still unsettled, the DOE has referred the matter to the Department of Justice, the Office of the Ombudsman, and the Office of the Solicitor General to determine the appropriate legal steps should Solar Philippines fail to comply.
“I will trust the decision of those agencies on what the options are for the DOE or the national government on what to do if they don’t pay,” Garin said.
The Energy chief emphasized that the enforcement action forms part of a broader regulatory process. She noted that other companies have also been penalized for failing to meet contractual commitments, but described the Solar Philippines case as unusual due to its scale.
Garin added that accountability is necessary to safeguard the credibility of the government’s renewable energy programs. “Because we cannot allow our investors to have this behavior…. if we just allow this kind of behavior, the integrity of our GEA (Green Energy Auction) and DOE will be compromised,” she said.
Regulatory Changes
Leviste had earlier denied wrongdoing and claimed he was being targeted over his stance against corruption. He also said his company had paid ₱70 million in fines related to terminated contracts, but disputed that the ₱24 billion penalty was imposed on a firm he owns.
As of posting, Solar Philippines has yet to issue a new response to the DOE’s latest statements.
To prevent similar delivery failures, Garin said the DOE has amended its rules to require investors to secure the properties where they intend to build power facilities before contracts are awarded.
She said the move aims to ensure that only legitimate and serious investors participate in the country’s energy sector, emphasizing that electricity is a vital public utility relied upon by all Filipinos.
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