PVTIME – The Philippines’ Department of Energy has announced plans to retender a portfolio of 1.35GW of solar and wind projects, following the failure of local firm Solar Philippines Power Project Holdings Inc. to start construction. This is the largest single cluster of renewable energy projects to be reauctioned since the launch of the Green Energy Auction Program.
SPPPHI and its subsidiaries secured seven projects, six solar and one wind, across GEAP’s first two rounds, with a total capacity of 1,350MW. GEAP 1 projects were due to be completed by 25 December 2025, and GEAP 2 projects by 25 December 2026, but no work has commenced. Key projects include the 450MW Tayabas solar project and the 300MW Kananga Ormoc solar project, both of which are currently stalled.
The retendering follows the expiry and non-renewal of SPPPHI’s performance bonds, which were worth over 14 billion Philippine pesos and covered all the stagnant projects. The Kananga Ormoc project has unpaid bonds totalling 4.45 billion pesos, while the General Santos project’s bonds amount to 2.96 billion pesos. According to GEAP rules, failure to maintain valid bonds constitutes a breach, allowing the Department of Energy (DOE) to confiscate the bonds and pursue civil action.
SPPPHI’s default is not an isolated case. DOE data shows that, of the 42 renewable energy service contracts awarded to its subsidiaries between 2017 and 2022, 24 have been terminated, abandoned, or shelved. Only nine of its projects are in commercial operation or in good standing with the seven GEAP schemes, while three non-GEAP projects are classified as non-compliant.
The move comes amid strong growth in investment in renewable energy in the Philippines. Between 2022 and 2025, the country awarded 20GW of renewable capacity, with the fourth round of the GEAP attracting significant interest from foreign developers through a tariff indexation mechanism. In 2024, the DOE launched an idle project clean-up, removing around 105 unprogressed schemes, and the 1.35GW retender is set to further boost market competition.
Industry insiders note that President Marcos’ recent focus on strengthening government support for renewable projects, alongside stricter GEAP compliance oversight, is likely to accelerate the delivery of high-quality schemes. The Philippines has already awarded 4,650MW via GEAP’s third round, with the fourth round focusing on solar storage integrated projects. The 1.35GW retender is expected to complement future auctions, supporting the country’s energy transition goals.
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