The Department of Energy will proceed with its updated bidding rules for brownfield coal resource areas despite opposition from key industry player Semirara Mining and Power Corp. Energy Secretary Sharon Garin affirmed that the revised terms will apply uniformly to all prospective bidders, as the government seeks to prioritize domestic fuel supply over foreign exports.
The policy shift centers on requiring winning developers of established coal reserves to sell 80 percent of their production within the domestic market. The Department of Energy established this requirement to cushion the Philippines against global energy supply shocks and geopolitical instability, particularly in the Middle East. By prioritizing local distribution over export markets, the government aims to strengthen national energy security through indigenous resource consumption.
Under the updated framework, the Department of Energy differentiates between unexplored greenfield sites and brownfield projects with proven viable reserves. The agency modified the bidding guidelines specifically for brownfield assets to maximize public benefits and local energy access. Officials clarified that the new guidelines establish equal standard for all applicants, rejecting concerns that the framework unfairly disadvantages specific operators.
Semirara Mining and Power Corp., whose contract for its Antique coal mine expires in July 2027, challenged the revised terms. The company raised concerns regarding asset transfer conditions, the removal of technical experience requirements, and potential supply disruptions affecting its future output targets. It also emphasized its long-term financial contributions, job creation, and community investments in its host region.
Despite these objections, the Department of Energy is advancing the 2026 Philippine Conventional Energy Contracting Program auction. Prospective developers will receive the full terms of reference to prepare their documentation ahead of bid evaluations scheduled for late November or December. Through this process, the government aims to establish a transparent framework while securing reliable energy reserves for the nation.
