How Leviste’s canceled Solar Philippines contracts affect you

MANILA, Philippines – For Energy Secretary Sharon Garin, the controversy over the energy contracts of Batangas congressman Leandro Leviste’s Solar Philippines all boils down to one important issue: how it affects the cost of electricity in the country. 

In 2024-2025, Solar Philippines Power Project Holdings Incorporated failed to deliver 11,427 megawatts (MW) or around 63% of the 17,903 MW potential capacity from 163 renewable energy projects. That means the country’s overall power supply won’t be able to meet rising demand for energy, which translates to failure to bring down the cost of electricity. 

“Dahil dito, manipis ang supply, umaakyat ang demand, so kulang, at hindi bababa ‘yung presyo,” Garin told radio DZMM on Wednesday, January 14. (Because of this, supply is thin, but demand is going up, so the price [of electricity] won’t go down.) 

On Tuesday, Garin announced that her department had slapped P24 billion in fines on Leviste’s Solar Philippines for at least 28 cancelled renewable energy (RE) contracts of the total 163 terminated RE contracts.

“Sa projections namin, basta pumasok lang itong contracts na ibinigay namin sa mga nakansela, at least mababawasan ng at least by 2030 by 2 pesos [per kilowatt hour, from 4-5 pesos],” she added. 

(Based on our projections, had these canceled contracts we awarded come in, the price would have gone down by at least 2 pesos [per kilowatt hour, from 4-5 pesos] by 2030.) 

Moreover, she said these canceled contracts could lead to more red alerts due to thin supply reserves. 

Garin said that even if Leviste had not gotten involved in the political controversy over the files of the late Public Works Undersecretary Cathy Cabral, the DOE would still be running after Leviste’s power firm for its failed project commitments.

In a separate interview on Wednesday, Garin was asked on radio DZBB whether Leviste still owns Solar Philippines, following a previous vow to divest in his power firm after his election as Batangas 1st district representative in the 2025 mid-term polls.

“’Pag DOE kasi ang tinanong mo, ‘pag naglipat ka ng ownership, dapat sabihan mo ang DOE kasi tina-transfer mo eh. As far as we’re concerned, wala pong request for assignment…so hindi pa naililipat. Ang ownership ng Solar Philippines is about 99% kay Congressman Leviste.” 

(If you ask the DOE, if you transfer ownership, you should inform the DOE. As far as we’re concerned, there’s no request for assignment…so it hasn’t been transferred. Congressman Leviste still owns around 99% of Solar Philippines.) 

‘Opportunist’

But there’s another reason why consumers should care about this issue, and it’s related to the one raised by Ombudsman Jesus Crispin “Boying” Remulla: the sale of the franchise of Leviste’s solar energy business to the Manila Electric Company (Meralco) group, accusing him of taking advantage of a national franchise for personal gain. 

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Garin said questions over the franchise granted to Leviste’s Solar Para sa Bayan during the Rodrigo Duterte administration is up to Congress to decide. But with respect to the canceled energy contracts, she said these companies, which failed to deliver, have to be made to account. 

“The DOE should be like a disciplinarain. Kasi kung pagbibigyan lang namin yan, eh walang mangyayari sa bansa natin. The future of our energy security rests on these companies. We don’t want these kinds of companies na sumali ulit, lalo na kung perennial, ‘yung paulit-ulit, ang dami-daming contracts na hindi naman pala natutuloy,” she said. 

(The DOE should be like a disciplinarian. If we don’t go after them, nothing will happen to our country. The future of our energy security rests on these companies. We don’t want these kinds of companies to join again, especially if they’re perennial, repeated [failure to deliver], with so many contracts that don’t get implemented.)

Similar to Remulla’s criticism of Leviste for “flipping” his franchise, Garin also assailed companies that bid for these contracts and then sell their companies to foreign investors just to make money.

“Oportunista [sila]…. Dati kasi, kahit hindi sa kanila ‘yung lote, nirereserba nila sa sarili nila para maggawa ng proyekto, then after 5, 10 years, wala pa rin ginagawa, so medyo style na ‘yan — ‘I’ll reserve this, I’ll get the service contract for this for this area, ‘pag may naghanap na mga foreign investors, ibebenta ko sa kanila.’ Puhunan nila? Wala. Bebenta lang sila ng kontrata. Because they know the Philippines is the most popular destination for renewable energy investments,” Garin said.

(Opportunists. Before, even if they didn’t own the lot, they reserve it for themselves so they could put up a project. Then after 5, 10 years, there’s still no work done, so that’s become like a style — “I’ll reserve this, I’ll get the service contract for this area, when they find a foreign investor, I’ll sell to them.” What’s their investment? None. They just sell the contract. Because they know the Philippines is the most popular destination for renewable energy investments.)

She said the DOE has tightened its rules before granting energy contracts. For instance, bidders must now have titles to the properties where the project will be put up, and clearance from the National Grid Corporation of the Philippines.

Asked why DOE awarded Solar Philippines the contracts in the first place, Garin said the company passed evaluation, joined the auction, won the auction, but in the end failed to deliver since it completed only 2% on its commitments.

She told ABS-CBN News that Solar Philippines “cashed in” on some of their contracts by selling to the Meralco group.

Garin said the DOE has issued show-cause orders to Solar Philippines, even giving extensions, but the company has yet to respond, prompting the agency to terminate the contracts. Government agencies are now evaluating what charges will be filed against the company, especially in the event it fails to pay the P24 billion penalties.

“If they don’t pay [the fines], we’ll take them to court,” she said. “Mali naman na palalampasin namin dahil nasa posisyon ‘yung may-ari.” (It would be wrong not to go after them just because the owner is in a position of power).

Garin said the DOE will reauction these renewable energy projects and will be more choosy about the companies and investors, adding that there are many companies, local and foreign, that are able to deliver on their commitments.

“Maraming magaling. Etong iba, ‘yung kumukuha lang ng kontrata…we don’t want that kind of company…. Dapat, we only deal with companies that deliver, we only deal with companies na hindi flippers,” she said.

(There are many good ones. There are some who just get contracts, we don’t want that kind of company. We should only deal with companies that deliver, we only deal with companies that are not flippers.)

In a social media post on Wednesday, Leviste said he had been told as early as September 2025 that cases would be filed against him for exposing the Cabral files, and that he should just keep quiet for his own sake. 

He also defended his solar energy companies, saying they were able to put up the biggest capacity of renewable energy in the country, in addition to bringing in foreign investments in 2025. 

Leviste said investments have since declined, claiming businessmen are being pressured. He did not elaborate. – Rappler.com

For more in-depth analyses of this controversy, read these Vantage Point articles:

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