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Manila Bulletin devider Business devider The Economy devider DOE awaits DENR carbon policy for coal-to-RE transition reassessment

DOE awaits DENR carbon policy for coal-to-RE transition reassessment

Published Jun 30, 2025 12:00 am  |  Updated Jun 28, 2025 03:00 pm
The Department of Energy (DOE) is awaiting policy updates from the Department of Environment and Natural Resources (DENR) to reassess the transition of coal power facilities to renewable energy (RE).
Speaking at the Media Kapihan on Energy Investment in the Philippines last week, Energy Undersecretary Rowena Cristina Guevara explained that the government is working on reviewing the current coal transition that would help push for the retirement of coal-fired power plants.
“We don’t have a carbon policy yet. The DENR is formulating this policy. And once the DENR comes up with that policy, and connects it with our national development contribution, then there is going to be a re-evaluation of coal transition,” she said.
“We have already announced that we are on the verge of issuing a whole transition advisory as directed by the President [Ferdinand Marcos Jr.], so just cleaning up the document,” Guevara added.
While the DENR has yet to announce the formalized carbon policy, the DOE has been actively encouraging energy players to take initiative to phase out or repurpose their coal plants, in an effort to increase the share of RE in the country’s generation mix to 35 percent in 2030, and 50 percent by 2040.
Ayala-led ACEN Corp. has taken the lead in this shift, initiating efforts to begin coal decommissioning. Last month, the company announced that its 246-megawatt (MW) South Luzon Thermal Energy Corp. (SLTEC) coal plant will undergo a study to explore repurposing options that would be best tailored to the facility.
The SLTEC coal plant is slated for retirement by 2030, in line with the transition credits framework under Article 6 of the Paris Agreement.
Just recently, the company announced the offloading of its three diesel plants in Luzon, allowing them to fully operate RE projects.
Its 52-MW diesel plant in Bulacan, 116-MW diesel plant in Subic, and 21-MW diesel plant in La Union were said to be sold to its investing holding company, AC Energy and Infrastructure Corp. (ACEIC).
The DOE has also previously expressed its plans to incentivize developers and other energy stakeholders that would participate in the government’s goal of energy transition.
Furthermore, the DENR has welcomed former Energy chief Raphael P.M. Lotilla this month as the new Environment Secretary, hoping his expertise in sustainable development and experience in the energy sector will strengthen the agency’s efforts in climate resilience, resource conservation, and more.

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Department of Energy (DOE) Rowena Cristina Guevara renewable energy (RE)
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