‘No compelling need to lift coal ban’

MANILA, Philippines — Building new coal-fired power plants in the Philippines remains prohibited for now as the Department of Energy sees no compelling need to scrap the existing moratorium.

The DOE has maintained its position on the ban, saying the policy “remains in effect and will not be lifted” despite calls to reverse it amid the ongoing energy emergency.

“Accelerating the development of renewable energy remains a central pillar of the country’s long-term energy strategy,” the agency said in a statement. “While coal continues to play a role in the current energy mix, its use is being carefully managed.”

Since 2020, a moratorium that bans the development of new coal plants has been in effect as the government seeks to reduce the country’s reliance on fossil fuels.

The policy, however, does not cover existing and operational coal plants or those that are already committed.

Also exempted in the ban are projects serving off-grid areas, facilities dedicated to the mining and processing of critical minerals, own-use projects within economic zones and on-grid plants considered vital to avert an imminent power supply crisis.

The DOE said it is currently evaluating indicative coal projects to determine which developments are no longer feasible to push through.

It is also reviewing the operational performance of existing coal plants, especially those that are aging, inefficient or prone to unscheduled outages.

“Facilities found to be unreliable may be considered for voluntary retirement, repurposing or transition to cleaner energy sources,” the DOE said.

The Philippines has one of the most coal-dependent power grids in Southeast Asia, with coal accounting for over 60 percent of its power mix.

Coal plants have been regarded as reliable sources of baseload power, capable of operating continuously and providing an uninterrupted supply of electricity.

Despite this reliability, coal remains one of the most environmentally harmful energy sources because of its high carbon emissions.

“The DOE remains firm in its policy direction and will continue to pursue initiatives that ensure the reliability, affordability and security of the country’s electricity supply through a balanced energy mix,” the DOE said.