The Department of Energy (DOE) said Thursday the construction of new on-grid coal power plants can be exempted from the coal moratorium policy during times of power crisis or imminent supply shortage.
It said in an advisory new capacity from on-grid coal-fired power plants may be allowed exemption solely under exceptional circumstances, such as during a “declared or imminent power crisis,” or when there is an imminent shortage of electricity supply that, if unaddressed, may lead to severe impacts in specific areas or regions.
The DOE also clarified that coal-fired power projects located in off-grid areas and those for own-use coal plants for the mining and processing of critical minerals essential to energy transition projects are not included in the moratorium.
It said industrial parks intending to develop and use coal-fired power plants for their own operations are also exempt. However, industrial end-users registered as locators in industrial parks registered with the Philippine Economic Zone Authority (PEZA) should secure an endorsement from the PEZA.
Proponents of coal-fired power projects falling under any of the aforementioned instances should apply with the DOE for a letter of acknowledgment of non-coverage, it said. They should also comply with conditions imposed on the retirement, retrofitting and conversion of the coal facilities.
All coal-fired power plants with a letter of acknowledgment of non-coverage should commit to a guaranteed delivery or commercial operations date and have a time-bound transition plan to renewable or clean energy sources.
Retirement or conversion to clean fuel alternatives should occur no later than Dec. 31, 2060, whichever is earlier, the DOE said.
Changes in the project timeline are subject to the DOE’s review and approval. The agency noted that this requirement does not preclude such power plants from being retrofitted or converted for continued operation using clean fuel alternatives to coal.
The DOE issued the Coal Moratorium Advisory on Dec. 22, 2020, halting the processing of applications for endorsements of greenfield coal-fired power projects, except for those falling under the conditions for non-coverage.
The agency said it has since received several requests for non-coverage and inquiries regarding the moratorium’s applicability.
