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TOP producers of coal-fired power plants are supporting the Department of Energy (DOE) ruling to stop supporting new coal-fired power plant projects.
The country’s energy mix is dominated by coal, which is the cheapest of the available technologies. According to DOE figures, the share of coal in the capacity mix was 40.5%, followed by oil with 16.8%, natural gas with 13.4% and renewable energy with 29.3 %. The power-to-coal ratio could rise to 60.2 percent by 2029 from 54.6 percent last year, according to a report from Fitch Solutions last September.
The DOE, based on its latest review, declared a moratorium on endorsements for new coal-fired power plants, citing the need to switch to a “more flexible power supply mix” that would help build a more sustainable energy system. in the country.
“Our periodic assessment of the energy needs of our country is paving the way for innovative adaptations in the direction of our policy,” said the Secretary of Energy, Alfonso Cusi.
When asked for comment, AC Energy Inc., Aboitiz Power Corp., Semirara Mining and Power Corp. (SMPC), San Miguel Corp. (SMC) and Meralco PowerGen Corp. (MGen) said they will abide by the DOE’s decision.
“It is a bold and progressive policy. It is quite commendable as it demonstrates our government’s commitment to energy security and sustainability. AC Energy fully supports Sec. Cusi’s leadership and we will continue to increase our investments in renewable energy in the country, ”AC President Eric France said in a text message.
Aboitiz Power Corp. also supports making the Philippine energy system more flexible, resilient and sustainable.
“AboitizPower’s growth strategy for the next 10 years remains the same, which is to significantly grow our renewable energy portfolio, Cleanergy. We have been pioneers of renewable energy in the country. Our diversification in thermal technologies was driven primarily by the country’s need for a reliable, accessible and affordable power supply, ”said company president Emmanuel Rubio by email.
Aboitiz Power, he added, is committed to meeting its goal of a more balanced energy mix or near 50:50 clean and thermal energy capacity by 2030.
SMC President Ramon Ang responded affirmatively when asked if the company will comply with the DOE’s pronouncement.
MGen, Meralco’s power generation arm, said the moratorium would not affect its existing coal power projects, as these were backed by the DOE before Cusi’s announcement on Tuesday.
“If you refer to Atimonan, it already has DOE approval as a committed coal project and also as a DOE certified energy project of national importance. In addition, it already has DENR ECC approval and NGCP connection agreement. So the moratorium will not affect our Atimonan project, “MGen President Rogelio Singson said in a text message.
But given a choice, Singson said the company would use supercritical HELE (high efficiency, low emission) technology in its power projects.
SMPC President Isidro Consunji also said the DOE gave the green light to the company’s coal plants. “This applies to new plants, not those with permits. We are installing one in Palawan and we can bid on new plants for Meralco, but [these were] allowed a long time ago, ”he said via text message.
While consumer groups praised the DOE’s decision, they are concerned about how the moratorium could affect energy rates.
“P4P welcomes the moratorium on DOE endorsements for brand-new coal power plants, but we have reservations about how it would affect electricity rates as the country seeks to recover from the coal pandemic,” said the Power for People Coalition. (P4P) in a statement. “The long-term benefits of coal would be complemented by decisive action by the government to also address the short-term effects of the impact of the bill that occurred during the enhanced community quarantine period. Only with concrete action in both the short and long term can DOE truly begin to say that it is a prosumer. “
The Center for Energy, Ecology and Development (CEED) commented that this measure would block at least 10.7 gigawatts (GW) of coal in the gas pipeline.
“We are delighted with the DOE’s declaration of a moratorium on the approval of new coal plant applications. However, the DOE cannot stop here. If it has to make up for the years in which it maintained its so-called technology neutral policy, it must continue with the phase-out of the 9.8 GW of coal currently installed in the country.
Without this, the suffering of communities affected by coal, rising electricity prices and pollution by fossil fuels would continue to proliferate, ”said CEED.
For his part, Laban Konsyumer Inc. said coal-fired power plants dominate the country because renewable energy (RE) technology is more expensive.
“We have a competitive selection process approved by the Supreme Court. Let that policy mature and allow power plants and distribution services to offer the lowest cost to consumers. Renewable energy was made too expensive by none other than ERC [Energy Regulatory Commission]”Said LKI President Victor Dimagiba.
DOE Undersecretary Felix William Fuentebella said the moratorium would not cover those on the agency’s indicative list of coal power projects. “We mean the new ones,” he said.
DOE data shows seven indicative coal power plant projects in Luzon. These, if approved by the DOE, will add 8,275MW of additional capacity. There are four indicative coal-fired power plant projects in Visayas and Mindanao, with a total additional capacity of 763MW.
