The Department of Energy (DOE) is set to release a formal coal transition plan, a key policy step that aligns the country’s climate commitments and renewable energy targets while securing stable power supply amid ongoing challenges in the coal sector.
Energy Undersecretary Rowena Cristina Guevara confirmed the development over the weekend, noting the framework was originally targeted for release in June but was delayed to allow broader industry consultation. The plan is designed to help the Philippines meet its nationally determined contributions (NDCs) under global climate accords and renewable energy goals, without compromising energy security.
“Despite our climate ambitions, it will not be right to shut down coal power plants without a replacement and experience power interruptions,” Guevara emphasized, outlining the core balance guiding the policy.
The framework will set clear timelines for construction of new coal-fired power projects not covered by the existing moratorium. Currently, an estimated 3,000 to 5,000 megawatts of proposed coal capacity falls outside the ban and may legally proceed, but proponents have faced operational issues including frequent unplanned shutdowns and deratings of existing facilities.
Complementing the transition strategy, the DOE announced Thursday, August 27, that state-owned PNOC-Exploration Corp. will conduct a feasibility study for a national coal blending facility. The initiative aims to cut reliance on imported coal and maximize use of local resources: the Philippines currently sources 95% of its coal from Indonesia, as most domestic coal—primarily from Semirara Island, which accounts for 93.7% of local output—has a low calorific value unsuitable for most power plant boilers. Blending local and imported coal could adjust fuel quality to match existing turbines, expanding domestic use and reducing supply risk.
“Our turbines are built for Indonesian coal. If we blend local coal with other sources, it can meet the required specifications,” Guevara explained. Most Semirara coal is currently exported rather than used domestically due to quality constraints.
The study will assess the facility’s cost, construction timeline, and impact on electricity prices. The DOE also intends to diversify coal import sources to strengthen supply resilience.
Latest DOE data shows the Philippines consumed 46.67 million metric tons of coal in 2024; local production stood at just 15.92 million MT. As of June 30, 2026, coal-fired capacity totals 9,410 MW, representing 39.4% of the country’s total installed power capacity of 23,884 MW.
The coal transition plan marks a critical policy milestone, linking near-term supply reliability with long-term decarbonization objectives to guide the energy sector’s orderly shift.
