DOE fines Solar Philippines ₱24 billion after the Department of Energy terminated power supply contracts totaling more than 11,000 megawatts over the past two years due to contract failures.

The Department of Energy (DOE) has imposed a massive ₱24-billion penalty on Solar Philippines after the termination of power supply contracts totaling more than 11,000 megawatts over the past two years, citing the company’s failure to meet its production and delivery commitments—one of the biggest enforcement actions taken by the government against a power developer.

According to the DOE, the penalties stem from Solar Philippines’ inability to fulfill obligations under various energy contracts that were expected to contribute significantly to the country’s power supply. Energy officials said the contracts were terminated after repeated delays and unmet milestones, raising concerns about project reliability and the impact on long-term energy planning.

DOE Secretary Sharon Garin said the agency consistently issued notices, show-cause orders, and formal requests for the renewal and payment of performance bonds, but these efforts failed to produce results. She noted that performance bonds are meant to protect the government and consumers when developers fail to deliver as promised. Without compliance, the DOE was left with no option but to enforce the penalties stipulated under existing regulations.

Garin added that the department has not received any official response from Solar Philippines regarding the payment of the required performance bonds, despite multiple reminders. The lack of engagement, she said, further complicated the government’s efforts to resolve the issue amicably and ensure accountability within the energy sector.

The termination of contracts covering more than 11,000 megawatts is significant, as these projects were expected to help support the country’s growing electricity demand and contribute to the expansion of renewable energy. Energy experts noted that while solar power remains a key pillar of the Philippines’ clean energy transition, project execution and compliance are just as critical as ambitious capacity targets.

Industry analysts said the case sends a strong signal to developers that regulatory commitments must be honored, especially as the government accelerates its push for renewable energy investments. They added that strict enforcement could help restore investor confidence by demonstrating that rules apply equally to all players, regardless of company size or project scale.

The DOE emphasized that the penalties are not meant to discourage renewable energy development, but rather to ensure discipline and credibility in the sector. Officials stressed that future project approvals will continue to prioritize developers with proven track records, strong financial capacity, and the ability to deliver projects on time.

For consumers, the issue underscores the importance of reliable power planning as the country balances affordability, sustainability, and energy security. The DOE said it remains committed to working with responsible developers to fast-track viable projects while holding non-performing firms accountable.

As of Tuesday, Solar Philippines has yet to issue a public statement addressing the fines or the terminated contracts. The DOE said it will pursue all legal and regulatory remedies available to enforce compliance and protect the public interest, as the government works to strengthen oversight of the rapidly expanding renewable energy sector.