Coal Moratorium (2020)
The coal moratorium is a DOE policy issued in 2020 prohibiting approval of new coal-fired power plant (CFPP) projects in the Philippines. It does not affect existing plants or projects already in the pipeline as of the policy’s issuance.
Legal Basis
Advisory on the Moratorium of Endorsements for Greenfield Coal-Fired Power Projects in Line with Improving the Sustainability of the Philippines’ Electric Power Industry — issued by the DOE on 22 December 2020 [PDP 2023-2050, Section 1.4, p.17, 2023].
Scope
Covered: New coal power projects — no new permits or endorsements for coal-fired generation facilities [PEP 2023-2050 Vol. I, p.13, 2023].
Not covered:
- Existing operating coal plants (continue to operate)
- Committed and pipeline projects approved before 2020 (allowed to proceed through approximately 2027)
- Hybridization of existing conventional plants (encouraged as a transitional measure)
Pipeline at Moratorium (Table 2 — Grid-Connected Projects)
As of the PDP 2023-2050 (data as of 2023), approximately 9,008 MW of coal projects were in the committed or indicative pipeline from before the moratorium. An additional ~11,000 MW held a Clearance to Undertake System Impact Study (SIS) but had not yet confirmed non-coverage [PDP 2023-2050, Table 2, pp.17–18, 2023]:
| Developer | Capacity | Status |
|---|---|---|
| Mariveles Power Generation Corp. | 1,650 MW (6 units: 4×150 MW Ph1 + 2×300 MW Ph2) | Committed |
| Masinloc Power Partners Co., Ltd. | 700 MW (Units 4 + 5, 350 MW each) | Committed |
| Palm Concepcion Power Corp. | 135 MW | Committed |
| FDC Misamis Power Corp. (formerly FDC Utilities Inc.) | 270 MW | Committed |
| Atimonan One Energy Inc. / Meralco Powergen Corp. | 1,200 MW (2×600 MW) | Committed — changed to gas; application to revert to coal pending |
| Redondo Peninsula Energy, Inc. (RPEI) | 600 MW | Committed but delisted |
| St. Raphael Power Generation Corp. (SRPGC) | 700 MW (2×350 MW) | Indicative |
| H & WB Asia Pacific (PTE LTD) Corp. | 700 MW (2×350 MW; supercritical PCB) | Indicative |
| Therma Visayas, Inc. | 150 MW (expansion) | Indicative |
| San Ramon Power, Inc. (SRPI) | 120 MW | Indicative |
| KEPCO Philippines Corp. | 1,000 MW (2×500 MW, Pangasinan) | Indicative |
| SMC Global Power Holdings Corp. | ~2,128 MW (multiple CFB units) | Indicative |
| Sarangani Energy Corp. | 105 MW (Phase 3) | Pending non-coverage application |
[PDP 2023-2050, Table 2, pp.17–18, 2023]
Moratorium Impact on Coal Pipeline
Within 2.5 years of the moratorium, the combined committed and indicative coal power project pipeline dropped from 11,289 MW (October 2020) to 3,125 MW (May 2023) — a 72.3% reduction [PDP 2023-2050, p.91, 2025].
Breakdown of remaining pipeline as of May 2023:
- Committed coal: 2,305 MW (24.1% of 9,557 MW committed pipeline) — these are the final pre-moratorium plants under active construction or GEA award
- Indicative coal: 820 MW (1.4% of 57,258 MW indicative pipeline) — pre-development; subject to NGCP SIS clearance
Effect on the Generation Mix
Under the coal moratorium, coal’s share in gross generation declines from 59.6% in 2022 to 14.1% by 2050 under the REF, despite absolute generation remaining relatively flat [PEP 2023-2050 Vol. I, p.13, 2023]. The share decline is driven by massive RE additions rather than coal shutdowns.
Under the CES, voluntary retirement and repurposing of CFPPs goes further:
- CES-1: ~3,660 MW retired by 2050
- CES-2: ~4,803 MW retired by 2050
Under the PDP 2023-2050 CEM, coal repurposing by grid under CES scenarios [PDP 2023-2050, pp.70–89, 2025]:
| Grid | CES 1 Coal Repurposing | CES 2 Coal Repurposing |
|---|---|---|
| Luzon | 3,287 MW | 4,059 MW |
| Visayas | 103 MW | 513 MW |
| Mindanao | 232 MW | 232 MW |
Policy Context
The coal moratorium is one of the enabling policy mechanisms for the Philippines’ RE targets . Natural gas (via LNG ) is positioned as the transition fuel to replace retiring coal capacity and to complement variable RE intermittency [PEP 2023-2050 Vol. I, p.13, 2023].
The moratorium coexists with policies encouraging coal hybridization for energy security — i.e., existing coal plants may be retrofitted to operate more flexibly alongside RE [PEP 2023-2050 Vol. I, p.22, 2023].
CCUS and Long-Term Coal Strategy
The DOE acknowledges coal’s continued role in the near-to-medium-term energy mix and is actively exploring Carbon Capture, Utilization and Storage (CCUS) technology to reduce its environmental impact. The Philippines participated in the Southeast Asia CCS Accelerator (SEACA) initiative in May 2023, part of the broader ASEAN energy cooperation framework, which focused on a near-term commercial deployment framework and roadmap for CCS in the region [PEP 2023-2050 Vol. II, p.12, 2023]. CCUS work is conducted in alignment with the ASEAN Forum on Coal (AFOC).
The DOE’s position — pursuing CCUS while maintaining the moratorium on new coal plants — reflects the tension between energy security concerns (coal’s ~60% generation share) and decarbonization commitments. See Upstream Coal Sector for the coal supply and production context.
Limitations
- Does not require retirement of existing plants; only prevents new ones
- Pipeline CFPPs (2023-2027) are exempted, meaning some coal capacity additions still occur in the near term
- No legal citation found in Section A of PEP Vol. I — the moratorium is referenced as an existing policy without citing the specific DOE order; full citation to be added on ingest of relevant DOE circular