Semirara Mining and Power Corp. (SMPC) has received the green light to advance its ₱291-billion coal expansion in Antique after securing a revised environmental clearance from the Department of Environment and Natural Resources (DENR).
SMPC said the amended clearance allows the project to cover 5,221.75 hectares, up from 4,369.25, within its 13,000-hectare coal development permit granted by the Department of Energy (DOE).
According to the nation’s top coal supplier, it plans to tap its new Acacia pit as reserves at its Molave and Narra sites run low. With the amended clearance, it can begin developing Acacia, estimated to hold 80 million metric tons of coal. The company said the move aligns with its DOE-approved mine plan.
Additionally, the move supports SMPC’s goal of reaching up to 16 million metric tons in annual output. While the company exports coal, it also provides low-cost fuel to local electricity producers, helping cut the country’s dependence on imports.
(Also read: Cebu Seeks Power Independence Amid Heat & Tourist Surge)
On the coal moratorium
In October 2020, the DOE implemented a moratorium on endorsements for new greenfield coal-fired power plants to help promote a more flexible, sustainable energy mix. However, the policy does not amount to a total ban.
Expansions of existing coal facilities, like SMPC’s coal expansion, as well as committed and indicative projects—those with prior permits, land deals, or financial closure—are still allowed to proceed.
Notably, in April 2025, the DOE confirmed that Meralco PowerGen’s 1,200-megawatt (MW) Atimonan plant in Quezon and the 73-MW Toledo plant in Cebu are exempt, but the Atimonan exemption was later placed under review.
Although the moratorium marked a shift in policy, exemptions allow up to 2.6 gigawatts (GW) of new coal capacity to proceed by 2025. This ensures a reliable baseload supply and supports national energy security, providing stability as the country continues to build out the infrastructure needed to support variable renewable energy sources.
(Also read: Visayas & Mindanao Are Growing Fast—Is the Power Supply Ready?)
Rise of renewables
The Philippines has also made significant progress in developing renewable energy—a key factor in diversifying the country’s power supply. In 2024 alone, the nation added 794.34 MW of new renewable capacity, surpassing the combined 759 MW installed from 2021 to 2023.
Through aggressive policy reforms such as the Renewable Portfolio Standards (raising the requirement from 1% to 2.5% starting in 2023), fast-tracked permitting schemes like the Certificates of Energy Projects of National Significance (CEPNS), and a shift toward 100% foreign ownership in RE projects, the Philippines is scaling up clean energy deployment at a record pace.
Furthermore, the DOE projects that by the end of 2025, over 4.2 GW of new power capacity will come from renewables, accounting for more than 75% of the 5.6 GW total new capacity planned, with 3.45 GW from solar and 558 MW from wind.
On the investment side, January 2025 saw a landmark $15 billion agreement between the DOE, Board of Investments (BOI), and UAE’s Masdar targeting up to 1 GW of solar, wind, and battery storage by 2030—with potential to scale up to 10 GW within a decade.
The rapid expansion of renewables underscores a deliberate shift toward a more diversified, sustainable, and climate-resilient energy system. This boosts energy security and reduces emissions.
Coal, an essential in the energy mix
As the Philippine economy continues to expand, growing by 5.4 % year-on-year in Q1 2025, the demand for reliable electricity is more urgent than ever. While the growth of renewable energy is laudable, reliable baseload power from fossil fuels like coal still plays a vital role in keeping the lights on and sustaining economic momentum—at least until clean energy technologies and storage solutions can consistently match demand.
Additionally, the DOE underscores coal’s vital role in the country’s power landscape, with fuel making up 62% of the Philippines’ energy mix.
Energy Secretary Raphael Lotilla stated, “We have over 6,300 megawatts of dependable coal capacity aged 10 years or younger. These plants can be relied on to operate for at least another 30 years.” He also noted that over 3,400 MW of coal facilities, aged between 10 and 30 years, are expected to continue running for at least another decade, further reinforcing coal’s role as a stable power source during the energy transition.
Lotilla added, “Maximizing the use of existing energy infrastructure avoids placing an added cost burden on both the economy and consumers.” By extending the operational life of reliable facilities such as coal-fired power plants, the country can avoid the substantial expenses tied to prematurely decommissioning assets and rapidly scaling up alternatives that may not yet be fully supported by current grid systems.
Dr. Eduardo Araral, an associate professor in Public Policy at the National University of Singapore, said a key concern in the Philippines is the burden higher renewable energy costs may place on low-income households. Without subsidies, these costs risk being passed on to poor and off-grid communities.
“As recent data shows, lower-income households in countries with energy poverty can spend between 10-40% of their income on energy, and the cost per kilowatt-hour is significantly higher for them, especially when relying on renewable sources,” he noted.
As to criticisms over coal’s contribution to climate change, the DOE stressed that the Philippines’ energy profile cannot be directly compared to larger emitters like China and Indonesia. “While the Philippines relies heavily on coal-fired power generation, the absolute amount of generation and corresponding emissions are minimal as compared to those of China and Indonesia,” the DoE said.
The agency noted that key differences between the Philippines and these countries make such comparisons misleading. It argued, “Therefore, the Philippines, cannot be reasonably compared to these large economies, which have different energy strategies and infrastructures adapted to their specific demographic and economic conditions.”
According to the European Commission’s Emissions Database for Global Atmospheric Research, China accounted for 29.2% of global greenhouse gas emissions in 2023, while Indonesia ranked seventh at 2.3%. The Philippines contributed just 0.5%.
DOE Undersecretary Rowena Guevara emphasized that energy is the engine of economic progress, and achieving a reliable, resilient, and affordable power supply is possible with a well-designed Philippine Energy Plan.
“We still have a growing economy to support, and our RE power plants are still to be built,” she explained, highlighting the need for a transition that must be carefully planned and precisely managed.
Meanwhile, the country’s top business groups, led by the Management Association of the Philippines, expressed support for the DOE’s push for a diverse energy mix, saying it strikes the right balance between climate goals and the urgent need to boost supply and keep electricity affordable.
“Even with the government’s goal of a 50% renewable energy share in the country’s power generation mix by 2040, it has left a sizable proportion for fossil fuel-based sources,” they noted.
Sources:
https://www.pna.gov.ph/articles/1119918
https://legacy.doe.gov.ph/press-releases/clarification-coverage-coal-moratorium-policy
https://climateactiontracker.org/countries/philippines
https://www.reuters.com/markets/asia/philippines-q1-gdp-grows-54-yy-2025-05-08
https://tribune.net.ph/2024/07/10/devt-goals-keep-coal-necessary