In December 2020, the Department of Energy (DOE) imposed a moratorium on coal power plants. Yet there are still reports of coal plant developments. What does this mean? Read on as we define and clear up misconceptions about the coal moratorium.
Context
When the moratorium was issued, the country was reeling from regular power outages. According to Institute for Climate and Sustainable Cities (ICSC) Senior Policy Advisor Pedro Maniego Jr., the outages were due to coal power plants breaking down because of high energy demand.
A moratorium or a temporary prohibition on new coal plants was thus declared by the energy bureau to encourage the development of alternative sources of energy. Alternative solutions are expected to mitigate problems associated with overworked coal plants and avoid outages. However, as the DOE explained recently, having the moratorium in place does not mean a total ban on coal power plants.
To understand why this is so, we have to understand the energy situation.
Over reliance on coal
According to DOE data, the Philippines draws 62.5 percent of its power from coal. Ember, an energy think tank based in London, said that the Philippines is the “most coal-dependent” country, surpassing Indonesia, Poland, and China.
While coal provides a stable baseload of energy, the power plants are strained when demand surges. Coal plants work best under stable conditions. Fluctuating demand adds to the plants’ wear and tear, eventually leading to breakdowns.
The country’s dependence on coal also means that it will not be easy to switch to renewable energy (RE) overnight.
Transition
Power generation needs to be flexible to match output to demand. To do this, the DOE has decided that the country has to lessen its dependence on imported coal and fossil fuels and integrate more renewable sources of energy such as wind and solar.
But while the country adopts RE, energy demands continue to rise along with economic growth. If we wish to keep the price of electricity at a manageable level, a transition plan has to be put in place.
The moratorium is part of this transition plan, with the idea that the energy sector will build up capacities in RE while providing energy security or ensuring that we will always have the energy that we need.
As former Energy Secretary Alfonso G. Cusi explained, “Central to the moratorium’s objectives was the enhancement of grid reliability by augmenting the power system’s capacity to withstand disruptions while optimizing overall grid operations. It sought to bolster the power system’s responsiveness to fluctuations in demand and supply, facilitating the seamless integration of emerging technologies into the grid infrastructure.”
Projects approved before the moratorium was imposed
The Department of Energy, through a statement issued in August of this year, clarified that the moratorium is not a total ban on coal-fired power plants. Several coal power projects are already in the pipeline and will be operational in the coming months.
The moratorium covers greenfield projects, meaning those that are built from scratch on undeveloped land. The existing coal plant projects in development are brownfield projects involving redevelopment or expansion of existing facilities.
Committed projects (those approved and certified before the imposition of the moratorium) are an essential part of the country’s transition to renewable energy. In the EJAP (Economic Journalists Association of the Philippines)-Aboitiz Power Corp. forum held recently, DOE Secretary Raphael Lotilla expressed, “We have to grow the power supplies and demand. Generation capacity will also have to grow by an average of 5 percent annually. And since renewable energy cannot provide all of that, nor can (it) provide the balancing source of power at this time, then it has to be the fossil fuels, particularly natural gas that will provide that.”
The coal moratorium applies to greenfield coal power plants, driving the country towards a renewable energy future. Local power companies are already launching RE initiatives, moving away from outdated coal technology. But while the transition is taking place, the DOE assures us that we will still enjoy stable, affordable, and reliable energy.
References:
https://www.rappler.com/voices/imho/opinion-philippines-decades-long-tug-of-war-coal-renewables
https://businessmirror.com.ph/2024/10/10/phl-leans-on-r-e-as-it-tries-to-wean-itself-off-coal
https://goenergylink.com/blog/greenfield-brownfield-development-difference