The Department of Energy (DOE) has clarified which coal-fired power projects can still move forward despite a moratorium on new coal developments in place since December 2020.
In a newly released advisory, the DOE said certain projects may be exempt from the ban, including coal plants in off-grid areas and those used to power mining and processing of critical minerals for energy transition efforts. Coal plants for industrial parks’ own use may also be allowed although companies inside economic zones must first secure necessary endorsements.
The DOE stressed that new coal capacity connected to the main grid will only be permitted in exceptional cases, such as during a declared power crisis or imminent electricity shortage.
Projects already granted a “letter of non-coverage” from the moratorium must stick to their committed timelines, and any changes will require DOE approval. These projects are also required to submit a transition plan to shift to cleaner energy sources, with a final deadline of December 31, 2060, or earlier.
The agency also noted that coal plants may be retrofitted to use cleaner fuels.
As of July 2025, coal remains the dominant energy source in the country, accounting for 41 percent (13,006 MW) of the total 31,701 MW grid-connected capacity.
