SP NEW ENERGY CORP. (SPNEC) said it’s asking the Department of Energy (DoE) to reconsider the termination of its service contract for a solar energy project in Sta. Rosa, Nueva Ecija, which experienced delays as a consequence of unexpected circumstances.
“The corporate 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 an announcement to the local bourse on Wednesday.
The corporate 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 through the first green energy auction in 2022.
GEA-1 projects are targeted for completion by 2025.
The corporate cited challenges comparable to transmission constraints that affected project progress.
“Pending the final result of said discussions and request for reconsideration, no hostile impact is anticipated on the general business, operations, and financial condition of the corporate,” SPNEC said.
In the identical disclosure, SPNEC clarified that it’s a separate entity from Solar Philippines Power Project Holdings, Inc., an organization currently facing penalties after the DoE terminated several renewable energy contracts.
It said that it “isn’t the ‘Solar Philippines’ mentioned within 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 greater than 18,000 MW of potential capability.
Responding not directly to the problem, businessman-turned-politician Rep. Leandro L. Leviste said on Facebook that he’ll address concerns in the right 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 staff in government, and I’ll address their statements in the right forum. I apologize to those that may feel affected, but what I’m standing up for is solely the reality. I’m deeply grateful to those calling for transparency in the usage of public funds.) — Sheldeen Joy Talavera