Department of Energy (DOE) Secretary Raphael Lotilla has said his agency’s decision to terminate idle renewable energy (RE) contracts will not discourage foreign players from investing in the local RE sector.
Lotilla said at a press briefing in Taguig City Wednesday that this move will encourage investments that will translate to construction and commercial operations of committed projects.
“In fact, it would encourage more serious investments in the RE sector,” he said. “And so, if they are not able to move, then the others who have the technical, the legal, and the financial capability should be given an opportunity to develop the same.”
The DOE chief added that projects that obtained contracts but have not been moving become idle assets, and the “people are concerned if they are not developed.”
In the same briefing, DOE Undersecretary Rowena Guevara told reporters that there will be another batch of RE contracts for termination on top of the initial 105 projects that have delays in their committed work plan.
Guevara said the DOE has almost finished sending out the letters to the proponents of the 105 idle RE projects but they are expecting that some will still request for consideration.
“So, that is possible. But even though we have already issued the first batch, we are still doing another review to make sure that there are no more projects that are delayed. And if there are, then we will again write [letter of] termination,” she added.
To date, around 1,400 RE service contracts have already been issued by the DOE. (PNA)
