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Ayala-led ACEN Corp. has surrendered two solar energy operating contracts covering a combined 456 megawatts (MW) of planned capacity in Quezon and Zambales, citing land acquisition and site access challenges.
In a regulatory filing, the renewable energy company said its subsidiaries Abagat Energy Corp. and SolarAce2 Energy Corp. voluntarily relinquished their respective solar operating contracts with the Department of Energy (DOE) this month.
Abagat Energy surrendered Solar Energy Operating Contract No. 2024-08-938 on Sept. 11 after encountering significant land acquisition challenges at its proposed project site in Pagbilao, Quezon.
The project was planned as a 336-MW solar facility and was awarded its service contract in August 2024. The proposed development was part of ACEN’s efforts to expand its renewable energy portfolio in the country.
SolarAce2, meanwhile, relinquished Solar Energy Operating Contract No. 2021-05-582 on Sept. 17. The contract covered a proposed 120-MW solar project in Botolan, Zambales, which the company decided to abandon because of persistent site access constraints.
The two projects together represented 456 MW of potential renewable energy capacity in the government’s pipeline of indicative power projects.
Early-Stage Projects
“These projects are still in the early stages of development, have not reached a final investment decision and neither subsidiary has commenced any commercial operations,” ACEN said.
The relinquishments will therefore not remove operating generating capacity from ACEN’s existing portfolio.
The cancellations also limit the immediate financial exposure associated with the two developments, as the projects had not advanced to the stage where full capital expenditure had been approved or deployed.
The move comes as ACEN continues to expand its renewable energy portfolio in the Philippines and overseas.
The company has more than 2,500 MW of renewable energy capacity either operational or under construction in the Philippines. On an attributable basis, ACEN said it has about 7,500 MW of renewable energy capacity from projects that are operational, under construction, or covered by signed agreements.
The company is targeting 20 gigawatts of renewable energy capacity by 2030 as part of its strategy to move away from coal-fired generation.
Wind Expansion
While the solar projects in Quezon and Zambales have been dropped, ACEN is pursuing a major wind development in Quezon province.
Last week, the company entered into a short-term loan agreement of up to ₱1 billion with subsidiary Giga Ace 6 Inc., which is developing the 344.5-MW Quezon North Wind Power Project.
The wind project is targeted for completion by 2027 and is expected to generate about 1,730 gigawatt-hours of clean electricity annually.
Quezon North Wind represents the first phase of ACEN’s broader wind power development in the province and underscores the company’s continued focus on adding renewable generation despite the cancellation of the two solar contracts.
The company has earmarked about ₱80 billion in capital expenditures for 2026 as it continues to expand its renewable energy portfolio in the Philippines and other markets.
The surrender of the two solar contracts is indicative of the development challenges that can affect renewable energy projects even before construction and commercial operations begin, particularly when securing suitable land and obtaining reliable access to project sites.
However, the cancellations involve projects that had yet to reach major investment and operating milestones, while ACEN’s renewable energy expansion continues through projects already under construction, operational facilities, and other developments backed by signed agreements.
Source:
https://www.philstar.com/business/2026/09/22/2557893/land-issues-force-acen-exit-2-solar-contracts
https://mb.com.ph/2026/09/21/acen-cancels-two-philippine-solar-projects-over-site-access-issues
https://business.inquirer.net/612182/acen-subsidiaries-give-up-2-solar-power-contracts