Voluntary CFPP Retirement and Repurposing
The Philippine Energy Plan 2023-2050 includes voluntary retirement and possible repurposing of coal-fired power plants (CFPPs) as a supply-side mitigation measure under the Clean Energy Scenarios. Retirement is voluntary, not mandated — the coal moratorium (2020) covers only new coal project approvals, not existing plants [PEP 2023-2050 Vol. I, p.103, 2023].
Retirement Volumes by Scenario
| Scenario | CFPP Retirement (MW) | Cumulative GHG Reduction |
|---|---|---|
| CES-1 (19 GW OSW) | ~3,660 MW, 2023–2050 | 6.1 MtCO₂e |
| CES-2 (50 GW OSW) | ~4,803 MW, 2023–2050 | 8.1 MtCO₂e |
[PEP 2023-2050 Vol. I, p.102, 2023]
The additional retirements under CES-2 vs. CES-1 (~1,143 MW) are enabled by the larger OSW capacity (50 GW vs. 19 GW), which provides replacement firm capacity.
Modeling Basis
In the CES scenarios, the PEP applies a 40-year technical life to existing coal plants, triggering retirement of older units across the planning horizon. This is the primary mechanism for CFPP retirement in the model — not a policy mandate [PEP 2023-2050 Vol. I, pp.10–11, 2023].
Repurposing Option
Rather than simply shutting down, decommissioned CFPPs can be repurposed for flexible operation using clean fuels, particularly natural gas (LNG). This preserves:
- Existing grid connections and transmission infrastructure
- Turbine facilities adaptable to gas combustion
- Workforce and operations experience
LNG plays a supporting role in grid stability during the transition period, compensating for the intermittency of VREs while conventional baseload is retired [PEP 2023-2050 Vol. I, p.103, 2023]. See LNG Imports as Transition Fuel .
Hybridization
The PEP also encourages hybridization of conventional energy (oil and coal) plants — combining them with RE or storage — as a way to reduce fuel utilization while maintaining their role in energy security [PEP 2023-2050 Vol. I, p.103, 2023].
GHG Context
CFPP retirement accounts for approximately 6–8 MtCO₂e of the cumulative GHG reduction under CES scenarios — a relatively small share of total avoidance compared to the RE and nuclear displacement of gas (which drives the 70.5 MtCO₂e annual CES-1 vs. REF gap by 2050). The larger impact is structural: retired CFPPs make room for OSW and VRE capacity to dispatch at full output [PEP 2023-2050 Vol. I, pp.100–102, 2023].
Financing Mechanism
The Energy Transition Mechanism (ETM) — an ADB-led blended finance structure — is the primary instrument for financing early CFPP retirement. Philippine cases include ACEN Batangas (246 MW) and an ADB Mindanao facility (BOT structure, targeted 2026 retirement). Transition credits and carbon market mechanisms (including Article 6.2 bilateral ITMOs) can further accelerate retirement timelines. See Energy Transition Mechanism (ETM) .