Philippine Energy dep’t reviewing renewable energy agreements to boost project rollout

THE Department of Energy (DoE) is reviewing renewable energy (RE) projects awarded under the open and competitive selection process (OCSP) to accelerate development and improve implementation efficiency, officials said.

“We are… reviewing whether OCSP projects are actually being implemented,” Energy Undersecretary Mylene C. Capongcol told reporters on the sidelines of a dialogue organized by Clean, Affordable, and Secure Energy for Southeast Asia on Wednesday. “We’re having it reviewed to determine the best way to accelerate and make it more efficient.”

The OCSP allows the DoE to award RE contracts in pre-determined areas through competitive bidding. These are locations identified as having high potential for renewable energy development, including hydro, geothermal and wind resources.

The government last ran an OCSP in 2023, receiving 25 bids across these technologies.

Ms. Capongcol noted that many contracts offered under OCSP come from projects that were terminated, relinquished or surrendered by developers. The review aims to ensure these areas are efficiently redeployed to meet the country’s RE targets.

In a draft terms of reference for the fifth round of OCSP, the DoE identified 11 pre-determined areas nationwide for potential RE projects.

Seven sites are earmarked for hydropower, with a combined capacity of 37.4 megawatts (MW). Two geothermal projects, with a potential capacity of 68 MW, are also proposed, while two wind projects are in the pipeline, though their capacity is still being assessed.

To date, the DoE has awarded more than 1,500 RE service contracts, representing about 130 gigawatts of potential capacity.

These projects are critical to raising the share of renewables in the national power mix to 35% by 2030 and 50% by 2040. RE generation now accounts for about 22% of total electricity.

Ms. Capongcol said projects awarded through OCSP and the rising adoption of distributed energy resources are expected to help the Philippines reach these targets.

The review also seeks to identify bottlenecks in project deployment, ensuring that renewable projects progress on schedule and contribute to grid reliability.

The DoE’s focus on OCSP underscores the government’s push to meet growing energy demand while reducing dependence on fossil fuels.

By streamlining existing contracts and accelerating development in pre-determined areas, Manila hopes to bolster renewable generation, attract private-sector investment and advance its climate and energy transition goals. — S.J. Talavera