PH new coal plants ban remains, no compelling reason to lift — DOE

The Department of Energy (DOE) is not keen on lifting the six-year-old moratorium on new coal-fired power plants despite calls to allow it in a bid to ensure stable and affordable sources of electricity as the country reels from high global fuel prices due to the Middle East war.

“The DOE reaffirms that the country’s coal moratorium policy remains in effect and will not be lifted, despite calls to allow the development of new coal-fired power plants,” it said.

The Energy Department issued a statement after Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan suggested lifting the ban as a “short-term option” while the country awaits massive renewable energy capacity to come online.

However, the agency said it “sees no compelling need to suspend or lift the coal moratorium” as “coal-fired power plants already under development and expected to come online are projected to provide sufficient capacity to support grid reliability in the near term.”

With this, the DOE said the coal moratorium imposed in December 2020 continues to be fully enforced.

“Under the policy, no new coal power projects may secure DOE endorsements after October 2020. However, projects that were already granted Certificates of Non-Coverage are permitted to proceed,” it said.

The December 2020 coal ban also provided that coal power projects categorized as committed for expansion, or indicative projects with substantial accomplishments may apply for non-coverage from the DOE.

In October 2025, the DOE issued a clarificatory advisory to further define the scope of the moratorium, particularly with respect to projects serving off-grid or island areas, facilities dedicated to the mining and processing of critical minerals, own-use projects within economic zones, and on-grid projects deemed necessary to avert an imminent power supply crisis.

The Energy Department emphasized that accelerating renewable energy development remains a central pillar of the country’s long-term energy strategy.

“At the same time, the DOE is conducting a review of indicative coal projects, prior to the coal moratorium, to identify developments that may no longer be feasible. It is also assessing the operational performance of existing coal-fired power plants, particularly those that are aging, inefficient, or prone to unplanned outages, to protect consumer interests,” it said.

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

While coal continues to play a role in the current energy mix, the DOE said that its use is being carefully managed.

Despite the moratorium, coal still makes up most of the country’s power supply, accounting for 63% of electricity generation.

Latest data available from the DOE website show that the country’s coal consumption stood at 17.280 million metric tons (MT) in 2024, versus the 16.772 million MT produced. The country imported 39.872 million MT, and exported 8.402 million MT. — RSJ, GMA News