The Department of Energy (DOE) on Wednesday reiterated its support to replace coal-fired power plants with renewable energy generators and lauded ACEN Corp. for voluntarily retiring its 246-megawatt South Luzon coal-fired power plant.
ACEN has partnered with the Rockefeller Foundation’s Coal to Clean Credit Initiative and the Monetary Authority of Singapore in exploring initiatives accelerating the retirement of coal-fired power plants.
“In line with its Energy Transition Program, the Philippine government is encouraging a voluntary early and orderly decommissioning or repurposing of existing coal-fired power plants, while securing a stable supply and addressing the climate emergency by ramping up our renewable energy target of 50 percent share by 2040,” the DOE said.
The DOE noted the power industry is market driven and privately-owned and the government’s role as regulator is limited to ensuring a competitive environment for all players.
The agency also said that since the cost of transition and the need for greater investment infrastructure is borne solely by an already overburdened consuming public, a strategic transition to renewable energy is needed.
“This is consistent with our view that it must be voluntary and must make business sense in a power sector like the Philippines that is privately-owned, market driven and un-subsidized. ACEN has our full support for this initiative, and we will explore ways to facilitate this program through access to climate financing,” the DOE said.
The DOE likewise said it favors incentivizing business owners and institutions that participate in the transition, noting that beyond merely retiring coal plants, this must also involve better access to electricity in remote islands, improved distribution systems, more energy storage systems, and making energy affordable for all.
As of end-2022, coal-fired power plants collectively generate 12,428 MW or 43.9 percent of the 28,258 MW installed capacity of the industry.
