The Department of Energy (DOE) on Wednesday defended its decision to impose fines and cancel contracts on Solar Philippines, the solar power company of Batangas 1st District Representative Leandro Leviste, citing the company’s failure to deliver over 12,000 megawatts of promised electricity—enough to supply more than half of the nation’s projected demand.
Energy Secretary Sharon Garin said the move is strictly regulatory, aimed at protecting energy security and preventing power shortages, and is not politically motivated.
Garin clarified in an interview on Dos Por Dos that Solar Philippines is just one of 163 renewable energy contracts the DOE has terminated due to overdue obligations.
“So parang pag nag-auction ka at manalo ka, nagko-commit ka dyan. Nagko-commit ka na magde-deliver ako ng itong mga megawatts para itong date,” she said. The company only delivered about 200 megawatts from small rooftop projects, far short of its contractual commitment.
The Secretary emphasized the consequences of non-delivery, which include potential electricity supply shortages and higher prices.
“We were expecting the lowering of prices if pumasok itong mga ito. Pero dahil hindi papasok, we have to find other solutions,” Garin said, adding that reliable energy supply depends on developers fulfilling their commitments.
Addressing claims that the DOE’s action was politically motivated, Garin said the decision is based solely on contract and legal obligations.
“Alangan naman hahayaan lang namin yan because there's a prominent figure or whatever company. We have to discipline our developers. Otherwise… walang energy security, mataas ang presyo ng kuryente,” she said.
DOE records show that Solar Philippines remains legally registered under Rep. Leviste, who owns nearly 99% of the company.
While the agency recognizes the company as legitimate, it criticized opportunistic practices in the sector, saying fines and contract cancellations are necessary to ensure accountability and public interest.
The DOE said it has followed proper notice procedures, giving repeated opportunities for compliance.
“We’ve given all the chances already. We called, emailed, sent letters. Nothing,” Garin said, noting that the company may still appeal the termination in court.
Garin also noted that issues regarding the lawmaker’s ownership or potential conflict of interest are under the jurisdiction of the Ombudsman and the Department of Justice.
“I think that would be Ombudsman role... This is about constitution. This is about the franchise. Di ba kung ano yung mga batas natin nagbabawal ng conflict of interest sa mga public servants. We leave it to the Ombudsman of the DOJ to determine if there is a violation,” she said.
DOE officials stressed that contract cancellations are part of a continuous effort to maintain reliable energy supply, ensure investor accountability, and prevent overpromising in the country’s renewable energy sector.
