DOE keeps coal moratorium, pushes existing projects to ease power costs

The Department of Energy (DOE) will maintain its moratorium on new coal-fired power plants, even as it moves to boost electricity supply and contain costs. 

At a media briefing on Monday, Energy Secretary Sharon S. Garin clarified that the government is not considering lifting the ban, pushing back against reports suggesting a policy shift toward new coal development.

“The moratorium stays. There is no lifting of the moratorium,” Garin said.

Instead, the DOE is prioritizing the completion of already-approved coal projects, particularly those that secured permits before the 2019 cutoff.

“We already have enough permits issued to allow additional coal power plants. There is no need to lift the moratorium,” she said. “What we need is for proponents to proceed with their contracts and complete these projects.”

The coal moratorium, introduced in 2020, prohibits new coal projects that failed to secure approvals before 2019, but allows previously permitted developments to move forward.

Garin said the agency is now reviewing which of these projects remain viable and urging developers to accelerate those that can still be delivered.

“We are currently reviewing which projects with pre-2019 licenses will no longer push through. For those who can proceed, they should move immediately and fast-track completion,” she said.

The DOE chief acknowledged that coal, despite being imported, still provides relatively cheaper electricity compared to alternatives such as diesel or liquefied natural gas, especially during periods of volatile global fuel prices.

“Coal is imported, but electricity generated from coal is still cheaper,” Garin said.

However, she emphasized that affordability must be balanced with reliability.

“There may be a need for cheaper sources of electricity, including coal, but there is no need to lift the moratorium because we already have existing contracts,” she said.

Last week, the country’s largest business group urged the government to lift the coal moratorium, as concerns over power supply and rising energy costs intensified amid ongoing tensions in the Middle East.

The Philippine Chamber of Commerce and Industry (PCCI) said revisiting the policy is critical as authorities recalibrate the country’s energy security and sustainability strategy in response to global uncertainties.

PCCI President Ferdinand Ferrer said that while the transition to renewable energy remains a long-term objective, ensuring a stable and affordable power supply must be the immediate priority for the economy.