DOE keeps coal moratorium despite calls for new plants

The Department of Energy has reaffirmed that the Philippines’ coal moratorium remains in effect, rejecting calls to lift restrictions on the development of new coal-fired power plants.

In a May 8 media release, the DOE said the moratorium imposed in December 2020 continues to be fully enforced and that there is no compelling need to suspend or lift the policy.

Under the moratorium, new coal power projects may no longer secure DOE endorsements after October 2020.

The department said projects already granted Certificates of Non-Coverage may proceed.

A Certificate of Non-Coverage allows qualified coal projects to move forward if they were already covered by exemptions or had reached a certain stage before the moratorium took effect.

The DOE said coal power projects categorized as committed expansion projects, as well as indicative projects with substantial accomplishments, may apply for non-coverage under the December 2020 advisory.

In October 2025, the DOE issued a clarificatory advisory defining the scope of the moratorium, particularly for projects serving off-grid or island areas, facilities dedicated to mining and processing critical minerals, own-use projects within economic zones, and on-grid projects deemed necessary to avert an imminent power supply crisis.

Despite the listed exemptions, the DOE said coal-fired power plants already under development and expected to come online are projected to provide sufficient capacity to support grid reliability in the near term.

The department said accelerating renewable energy development remains a central pillar of the country’s long-term energy strategy.

“At the same time, the government is intensifying efforts to expand renewable energy capacity, recognizing its long-term benefits in terms of affordability, reliability, energy security, and environmental sustainability,” the DOE said.

The DOE is also reviewing indicative coal projects proposed before the moratorium to identify developments that may no longer be feasible.

The department said it is assessing the operational performance of existing coal-fired power plants, particularly those that are aging, inefficient, or prone to unplanned outages, to protect consumer interests.

Facilities found to be unreliable may be considered for voluntary retirement, repurposing, or transition to cleaner energy sources.

While coal remains part of the country’s current energy mix, the DOE said its use is being carefully managed.

The Philippines is pursuing a target of raising renewable energy’s share in the power generation mix to 35% by 2030 and 50% by 2040, according to DOE power development planning documents.

The department said the combination of existing approved power projects and an accelerated push for renewable energy is sufficient to meet projected demand without lifting the coal moratorium.

The DOE said it will continue pursuing policies that ensure the reliability, affordability, and security of the country’s electricity supply through a balanced energy mix.