DOE plans to restart coal capacity buildup

MANILA, Philippines — The Department of Energy (DOE) is seeking to fast-track up to 5,000 megawatts of new coal-fired capacity to avert blackouts as the country ramps up its rollout of renewable power.

Energy Undersecretary Rowena Cristina Guevara said the DOE is set to issue a coal transition plan that will include a work program for developing coal projects exempt from the existing moratorium.

“We need to build those that are not covered by the moratorium,” Guevara said in an interview, citing the need to address the forced outages and deratings of several coal-fired power plants.

To reduce the country’s reliance on fossil fuels, the government has banned the construction of new coal plants since 2020.

The policy, however, does not cover projects that had already been committed to the government before the moratorium took effect.

While many projects remain exempt from the moratorium, Guevara said their developers are “not building.”

“About three to five gigawatts. That’s still a lot. But that’s the thing, we’re not seeing them build,” she said when asked about the capacity of coal contracts that have yet to move forward.

The lack of progress on most planned coal facilities, she noted, stands in contrast to renewable energy projects, which are guided by clear work plans and development timelines.

The DOE official warned that coal projects that remain idle could eventually face contract termination.

As part of its energy transition plan, the Philippines aims to increase the share of renewables in its power mix to 35 percent by 2030 and 50 percent by 2040 from the current 25 percent.

It has also committed to cutting greenhouse gas emissions by 75 percent by 2030 under its nationally determined contribution.

Even as the government pushes toward these targets, the DOE is keeping its focus on ensuring energy security.

“At the end of the day, we can’t just suddenly have brownouts,” Guevara said.

The simultaneous shutdowns of multiple major coal plants have been the culprit behind the continued power supply strain in the Visayas.

The region has recorded 27 red alerts and 92 yellow alerts since the start of the year, according to the National Grid Corp. of the Philippines.

A yellow alert is hoisted when the operating margin falls below the grid’s contingency requirement, while a red alert is issued when the electricity supply is no longer sufficient to meet consumers’ demand. 

Manila-based think tank Institute for Climate and Sustainable Cities said the recurring grid alerts highlight the urgent need to move away from large, centralized coal plants.

“A more decentralized and diversified approach strengthens local reliability and self-sufficiency while reducing the risk of supply disruptions caused by outages, disasters and other physical shocks,” it said.