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The Department of Energy (DOE) will open a competitive bidding round on Feb. 27 covering 18 coal blocks across three pre-determined areas (PDAs), including the Semirara coal field, as part of efforts to strengthen energy security while aligning operations with constitutional and environmental requirements.
The auction follows a Department of Justice (DOJ) opinion stating that existing 50-year coal operating contracts, including the one covering Semirara, cannot be renewed and must instead undergo public bidding.
Bidding Process
Under the program, the DOE will offer 10 coal blocks in Semirara Island in Caluya, Antique; five blocks across the municipalities of Benito Soliven, Naguilian, and Cauayan in Isabela; and three blocks spanning Amulung and Iguig in Cagayan province.
Semirara Island currently accounts for nearly 94% of the country’s domestic coal production and is operated by Consunji-led Semirara Mining and Power Corp., the Philippines’ largest coal producer. Its existing contract is set to expire next year. A coal block refers to a specific geographic area containing coal reserves designated for exploration or mining.
The DOE described the PDA bid round as a competitive process in which identified resource areas are offered for development and production under a transparent evaluation and award mechanism. From the Feb. 27 launch, interested parties will have 60 calendar days to submit application documents.
The submission deadline is set at 11 a.m. on the 60th day, with the opening of applications scheduled at 1 p.m. the same day. A pre-submission conference will be held 20 days after launch to address bidder inquiries and clarify requirements.
Legal Basis
Energy Secretary Sharon S. Garin said the government aims to “uphold the rule of law while safeguarding our indigenous energy resources.”
“Any future contract or continuation of operations must strictly comply with constitutional limits and demonstrably protect both the national interest and our host communities,” she added.
The awarding of contracts will be governed by recently issued rules that introduce a new contract framework intended to accelerate the development of confirmed coal deposits while maintaining safeguards for public safety, environmental protection, and host-community welfare.
Michael T. Toledo, chairman and president of the Chamber of Mines of the Philippines, said structured bid rounds demonstrate policy consistency, which helps build investor confidence.
“Investors value stable rules, transparency, and responsible standards. Strengthening these benefits not only coal but the wider mining and natural resource sectors,” he said.
Energy Security
Coal remains a dominant source of power generation in the Philippines, although more than 90% of the country’s coal requirements are imported. DOE data as of April 2025 showed coal imports reached 39.87 million metric tons in 2024, up 12.2% from the previous year.
The DOE said coal operations remain subject to strengthened governance, safety, and environmental standards as part of the country’s energy transition pathway. These include reinforced mine safety and environmental protocols, progressive rehabilitation and decommissioning requirements, and stricter compliance measures covering geotechnical monitoring, slope stability assessments, occupational health and safety, environmental protection, and reporting.
Just Transition
Since October 2020, the agency has maintained a moratorium on endorsements for new or “greenfield” coal-fired power projects to shift the energy mix toward renewable sources. It has also moved from voluntary to mandatory coal retirement planning, requiring all coal-fired power plants to adopt time-bound transition plans to retire or convert to cleaner fuel alternatives no later than Dec. 31, 2060.
While recent advisories allow new coal capacity under exceptional circumstances, such as imminent power shortages or off-grid needs, the DOE said it is studying the socioeconomic impacts of closing coal mines and plants to ensure a just transition for affected workers and communities.
Source:
https://mb.com.ph/2026/02/18/doe-opens-coal-bidding-in-wake-of-semirara-contract-rejection