The Department of Energy (DOE) has terminated the 2026 Coal Bid Round covering three areas to secure bigger and more measurable economic returns for the government from coal resources already confirmed to be commercially viable.

The DOE clarified on Saturday that existing data showing the offered areas contain confirmed mineable coal reserves of ial quantity, making them ready for direct development and production.

With substantially less geological uncertainty, the department said the resources should be treated as valuable State assets whose development must generate returns commensurate with their established potential.

“The DOE maintains that the development and production of these resources must serve the national interest. 

Any Coal Operating Contract (COC) for development and production should provide clear and measurable economic returns to the government while supporting domestic energy requirements, strengthening energy security, and delivering tangible benefits to Filipino consumers,” the DOE said.

The department will now recalibrate the parameters for awarding COCs, giving greater weight to government revenues and other enforceable economic benefits.

“The DOE will recalibrate the bidding parameters toward a fair, transparent, and comprehensive evaluation framework that gives greater weight to clear, measurable, and enforceable economic benefits,” the DOE said.

These will include appropriate government revenues and commitments for domestic utilization that the DOE said could help lower electricity costs for consumers.

The reassessment will also consider concerns raised during pre-submission conferences and developments affecting Semirara Island.

According to the DOE, ongoing water seepage could affect the volume of extractable coal reserves, while a legal dispute involving the current operator and the department over coal operation assets has created uncertainties for prospective bidders.

The DOE is also working with the Department of Environment and Natural Resources on a policy framework for awarding service and operating contracts involving natural resources.

“The termination of the current bid round does not signal a retreat from the responsible development of indigenous energy resources.

Rather, it allows the government to establish stronger parameters before the areas are offered again, ensuring that the development of the country’s resources contributes to long-term energy security and creates tangible value for the Filipino people,” the DOE said.