SP NEW ENERGY CORP. (SPNEC) said it is asking the Department of Energy (DoE) to reconsider the termination of its service contract for a solar power project in Sta. Rosa, Nueva Ecija, which experienced delays due to unforeseen circumstances.
“The company is in discussions with the Department of Energy regarding said force majeure claim and intends to request for the reconsideration of the termination,” SPNEC said in a statement to the local bourse on Wednesday.
The company received a notice of termination for the Sta. Rosa service contract, which it had previously flagged as subject to a force majeure claim.
SPNEC won the contract to develop the 280-megawatt (MW) project during the first green energy auction in 2022.
GEA-1 projects are targeted for completion by 2025.
The company cited challenges such as transmission constraints that affected project progress.
“Pending the outcome of said discussions and request for reconsideration, no adverse impact is expected on the overall business, operations, and financial condition of the company,” SPNEC said.
In the same disclosure, SPNEC clarified that it is a separate entity from Solar Philippines Power Project Holdings, Inc., a company currently facing penalties after the DoE terminated several renewable energy contracts.
It said that it “is not the ‘Solar Philippines’ mentioned in the news articles,” although the Leviste-led firm is a stockholder in SPNEC.
Solar Philippines has been fined P24 billion for failing to deliver nearly 12,000 MW of renewable energy over the past two years.
The DoE terminated 33 of its service contracts, accounting for around 64% of more than 18,000 MW of potential capacity.
Responding indirectly to the issue, businessman-turned-politician Rep. Leandro L. Leviste said on Facebook that he will address concerns in the proper forum.
“Iginagalang ko ang mga kawani ng gobyerno at tutugon ako sa kanilang mga pahayag sa tamang forum. Paumanhin po sa mga natatamaan, pero ang pinaglalaban ko lamang ay ang katotohanan. Lubos ang aking pasasalamat sa mga nananawagan para sa transparency sa paggamit ng pondo ng bayan,” he said. (I respect workers in government, and I will address their statements in the proper forum. I apologize to those who may feel affected, but what I am standing up for is simply the truth. I am deeply grateful to those calling for transparency in the use of public funds.) — Sheldeen Joy Talavera
