Coal moratorium review secures key backing
‘We need to regulate supply, we can’t just rely on solar for example. In 2020, we issued a moratorium not to approve new coal plants. We have to review it regularly’
Former Energy Secretary Alfonso Cusi said regulators should be open to reviewing the moratorium imposed on the development of new conventional coal-fired plants, especially now that the persistent power alerts revealed the dire need for additional baseload supply.
The moratorium was imposed in 2020 under Cusi’s term. “We need to regulate supply, we can’t just rely on solar for example. In 2020, we issued a moratorium not to approve new coal plants. We have to review it regularly. However, we should not do it arbitrarily because we see what the situation is,” Cusi said in an interview at Straight Talk, an online show of the DAILY TRIBUNE.
“There are supposed to be reserves, we must have firm reserves for the reliability of the grid, that’s in the regulation. For us to have a reliable supply, we must always have reserves,” he added.
In 2020, the Department of Energy (DoE), then led by Cusi, imposed a moratorium on building brand-new coal power plants. This decision was made to facilitate the transition to a more adaptable mix of renewable energy sources.
The moratorium aims to establish a flexible power system capable of accommodating an increase in indigenous, cleaner energy sources, according to Cusi.
Several fence-sitters
Previously, even tycoon Manuel V. Pangilinan, who sits as chairman and chief executive officer of the Manila Electric Co. (Meralco), is open to building new conventional plants, including coal-fired ones, should the government alter its current energy trajectory in response to the urgent need for increased capacity.
“Whether it be coal or gas, again, there’s got to be some guidance given to us as to where we should turn. Because the newest capacities, they’re small capacities,” Pangilinan said.
“You have to turn to conventional power plants. Either by coal or by gas. It moves all of us to build more plants. It’s as simple as that, isn’t it? Except, we have to get together and map out the new studies so that we avoid the consequences that we see now,” he added.
Conventional fuels such as coal and gas remain to be an indispensable source of power as they remain a cheaper alternative to baseload supply. Unlike renewable energy, this type of baseload is available all-day round.
Coal still accounted for a sizable portion of the total installed capacity, despite the government’s stated commitment to promoting clean energy sources.
In 2023, coal made up 43.9 percent of the entire 12,406 megawatts (MW) on-grid installed capacity.
Off-grid, the total installed capacity was 684.666 MW, with coal accounting for 2.2 percent of that capacity.
Despite an ambitious plan to transition to cleaner energy, Aboitiz Power Corp., the country’s largest power producer in terms of installed capacity, still has significant investments in coal-based fuels, including the 340-MW Therma Visayas Inc. plant in Cebu, which it intends to expand.
AboitizPower recently said that the project’s provision for expansion is suitable for coal. The company maintained that Cebu is not suited for renewable energy because it lacks adequate land area to accommodate a 150-MW solar or wind plant.
If AboitizPower had not proceeded with the GNPower Dinginin plant, approximately 1,300 MW of power would have been cut from the national grid, exacerbating the recent string of power alerts in the Luzon and Visayas regions.