SP New Energy Corp. (SNPEC), a subsidiary of Meralco PowerGen Corp., asked the Department of Energy to terminate its contract for a 280-megawatt solar project in Nueva Ecija under the Green Energy Auction Program 1.
SPNEC said in a disclosure to the Philippine Stock Exchange its board approved the “ratification of the request for termination sent to DOE of its First Green Energy Auction Round [GEA-1] notice of award covering its Sta. Rosa project.”
The GEA, launched in 2022, is a market development support program introduced by the DOE to promote renewable energy as one of the country’s primary sources of energy through the transparent and competitive selection of RE facilities.
SPNEC unit Solar Philippines Nueva Ecija Corp. offered a rate of P3.67 per kilowatt-hour to construct the Santa Rosa Nueva Ecija 2 Solar Power project.
SPNEC now wants to terminate its contract with the DOE, citing force majeure.
“As regards our request for termination of SPNEC’s GEA round 1 award with the DOE, this stems from the challenges faced by this project particularly on transmission constraints, which is beyond our control. Our request remains subject of course to DOE approval and are well within the parameters established in GEA 1 guidelines,” Meralco PowerGen president Emmanuel Rubio said.
“Having said that, SPNEC remains as a committed partner of the government’s thrust to increase the share of RE in the overall energy mix of the country, as we continue to assess and develop opportunities while we progress with execution our existing projects,” he said.
DOE assistant secretary Mylene Capongcol said SPNEC’s request was being reviewed by the agency.
“It’s under evaluation by the GEA committee,” Capongcol said.
