Leviste’s solar firm fined P24 billion over stalled contracts

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(1st UPDATE) Leviste-led Solar Philippines is supposed to deliver nearly 12 gigawatts of renewable energy capacity

MANILA, Philippines – The Department of Energy (DOE) is imposing P24 billion in penalties on Solar Philippines Power Project Holdings Incorporated, a renewable energy firm founded by Batangas 1st District Representative Leandro Leviste, for failure to meet commitments.

The penalties, which include forfeited performance bonds, administrative obligations, and estimated project costs embedded in the contracts, are being pursued by the DOE following the termination of service contracts across the renewable energy sector, according to Energy Secretary Sharon Garin.

The action forms part of a broader enforcement campaign that seeks to clear stalled developments from the DOE’s energy pipeline. 

According to reports, the DOE is relinquishing 163 renewable energy service contracts issued from 2024 to 2025 with a total capacity of 17,900 megawatts. Solar Philippines accounted for 11,427 megawatts, or nearly two-thirds of the withdrawn capacity. Most of the canceled projects were large-scale solar developments in Luzon awarded under the government’s Green Energy Auction program. 

Garin said the department had issued show-cause orders to Solar Philippines and its affiliates, but that key deficiencies remained unresolved. In several cases, she said, developers failed to submit required progress reports or demonstrate sustained construction activity, triggering mandatory cancellations under the terms of the contracts. Some of the affected projects carried final completion deadlines of December 25, 2025.

The cancellations underscore a central challenge in the Philippines’ transition to renewable energy: converting awarded capacity into power that actually reaches the grid. Government energy planning assumes that contracted projects will be delivered on schedule, shaping transmission investments and power-supply forecasts years in advance. When large projects stall, utilities often rely more heavily on costlier sources of electricity to meet demand, contributing to higher power prices and tighter reserve margins.

Energy officials said the enforcement effort was intended to remove what they described as “zombie” projects — developments that hold land, permits and grid access but show little prospect of completion — and to reallocate scarce sites to investors with the technical and financial capacity to build. 

The Philippines faces a projected shortfall of 17 to 18 gigawatts under its renewable energy auction commitments, according to government data, heightening pressure to ensure that approved projects move quickly from planning to construction.

When asked about the shortfall, Garin said they are already planning “more green energy auctions” in 2026. The Philippines targets to increase renewable energy’s share in the power mix to 35% by 2030.

The DOE is now considering whether the revoked project areas should be placed under an open and competitive selection process, allowing new bidders to take over dormant developments. Garin said the policy overhaul underway was aimed at tightening screening rules so that long-term contracts go only to developers capable of execution.

The crackdown, she added, was not intended to deter investment in renewable energy, but to restore confidence that government approvals would translate into electricity delivered to consumers. 

“Land and grid access are limited,” she said. “Our responsibility is to make sure these resources produce power, not just plans.”

The Ombudsman is investigating Leviste for supposedly “selling” his solar business’ franchise to tycoon Manny V. Pangilinan, an allegation that Meralco PowerGen Corporation has since denied.

Solar Philippines promotes itself as “the largest solar company in Southeast Asia with over 300MW of generating capacity and 10,000 hectares of land area conducive for solar farms.” Its portfolio on its website boasts of over 10,000 hectares of land to be developed in solar energy zones in Batangas, Nueva Ecija, and Tarlac. – Rappler.com