DOE, UNOPS to assess economic risks of coal phaseout

The Department of Energy (DOE) is studying the possible nationwide phaseout of coal mines and coal-fired power plants as part of the Philippines’ long-term energy transition plan.

DOE energy policy and planning director Michael Sinocruz said the agency has partnered with the United Nations Office for Project Services (UNOPS) to examine the potential impacts on the economy, power supply, and host communities.

The study, expected to begin in 2026, will assess the costs of supporting displaced workers and communities dependent on coal operations.

“Part of the study should be how much money or funding do we need to protect this possible displacement of workers and even the livelihood of the community,” Sinocruz said during the Philippine Energy Transition Dialogue 2025.

He added that the DOE will consult with coal mining companies once the study is completed to ensure alternative livelihood and energy options are in place.

Sinocruz stressed that any phaseout will require careful planning and timing to safeguard the country’s energy security.

The study’s findings could serve as a basis for new policy recommendations to be considered by the DOE or the national government.

Coal remains the dominant source of power in the Philippines, accounting for 62.5 percent of the generation mix, while renewables contribute 22.2 percent.

The DOE has maintained a moratorium on new coal projects since 2020, though the policy excluded existing and already committed plants.

Semirara Mining and Power Corp. (SMPC), the country’s largest coal producer, said it supports the energy transition but underscored coal’s role in ensuring stable electricity supply.

“We trust that the transition will be managed in a way that balances sustainability with the country’s energy and economic needs,” SMPC said in a statement.