The Department of Energy plans to use the $500-million funding recently approved by the Climate Investment Funds (CIF) for the retirement or repurposing of the Mindanao coal-fired power plant.
“Along with various commitments to advance global climate goals, the country’s vulnerability to climate-induced disasters underscores the need for immediate action to achieve a just energy transition. We welcome the Climate Investment Funds’ approval of the $500 million funding under the Accelerating Coal Transition Investment Program, which will pave the way towards creating an enabling environment for a just energy transition that supports sustainable development objectives,” Energy Secretary Raphael Lotilla said.
The CIF, which governs the pioneering multilateral climate fund and delivers low-cost finance to over 70 developing countries, recently endorsed a new investment plan presented by the government, allocating $500 million for a just transition from coal to renewable power in the country.
The energy chief said the funds would also enable energy transition initiatives while replacing the generation output of coal plants through the development of new renewable energy facilities.
“The challenges of accelerated coal retirement in a private sector-led power industry remain. However, we trust that the ACT Investment Program will serve as a robust blueprint for the process of transitioning away from coal and subsequently fuel the development of the country with clean energy,” Lotilla said.
“The realization of this aspiration is only possible through sustained and meaningful engagements with our stakeholders and outcomes-based support from our global partners,” he said.
The Philippines plans to accelerate the retirement of up to 900 MW of existing coal generation capacity by 2027.
CIF funding will support efforts to add 1,500 MW of renewable energy capacity by 2030 which could include battery systems, offshore wind, floating solar and pumped hydro projects.
