Coal phaseout impact under DOE lens

The Philippines is set to put coal under scrutiny, with the Department of Energy (DOE) eyeing a study with the United Nations Office for Project Services to measure the full weight of a potential coal phaseout on workers, communities, and power security.

Energy Director Michael Sinocruz said Wednesday the study could start next year and will look into workers, livelihoods, and possible funding alternatives.

“(The study) may start next year but I don’t know how long it will take to study or to conduct the study.

Based on this, we can have or probably recommend policies for consideration of the DOE or by the national government, providing alternatives for those that will be affected by this transition,” Sinocruz said.

However, Sinocruz noted that if the findings show negative impacts without viable options, the coal phaseout may not move forward.

Reacting to the planned study, Consunji-led Semirara Mining and Power Corp., the country’s largest coal producer, said it supports the initiative but warned against rushed changes.

“For now, coal remains the backbone of our baseload supply, ensuring affordable and reliable electricity. Any move to phase it out will need careful study, timing and planning to ensure energy security and protect livelihoods,” the company said. 

“We trust that the transition will be managed in a way that balances sustainability with the country’s energy and economic needs,” it added.

As of June, renewable energy supplied 10,051 megawatts (MW), or 32.3 percent of the country’s total installed capacity of 31,073 MW. Coal continued to dominate the mix at 13,006 MW, accounting for 41.9 percent.

The government is pushing to flip the balance, with renewables eyed to reach 35 percent of the power mix by 2030 and 50 percent by 2050.

In 2023, the country consumed 43.49 million metric tons (MT) of coal, relying heavily on imports at 35.54 million MT. Local output stood at 16.56 million MT, but nearly half—8.06 million MT—was shipped abroad.