The Department of Energy (DOE) has formally re-issued “committed capacity” status for the 1,2000 Atimonan One Energy Inc. (AOE) ultra-supercritical coal-fired power plant project of Meralco PowerGen (MGen), the power generation subsidiary of Manila Electric Co.

The re-issued confirmation that was signed by Energy Secretary Sharon Garin on July 10, 2025, and exclusively obtained by Manila Bulletin, essentially allows the plant’s advancement from shovel-ready phase to construction as well as the eventual commercial operations date (COD) as targeted by February 2030.

“After review of the factual antecedents in relation to the coal moratorium policy, the DOE grant’s AOE’s request for the reissuance of the confirmation on the non-coverage of the 1,200MW ultra supercritical pulverized coal-fired power plant from the coal moratorium policy,” the energy department stipulated.

To note, the DOE recalled in April the earlier approval it granted for the project’s implementation, citing further review to be undertaken on its exclusion from the prevailing coal moratorium edict.

Fundamentally, the coal moratorium directive excludes power plant projects that had already achieved compelling milestones in their implementation – including those on permitting, financial closing and pre-development activities. In the case of the Atimonan plant, it has already reached the construction-ready stage, holding a live environmental compliance certificate (ECC) since 2015, and was also granted the status of an energy project of national significance (EPNS) by the DOE.

On the final clearance extended to the project, the energy department sets several conditions that must be complied with by Atimonan One Energy – primarily the submission of development plan for it to reach commercial stream by the turn of the decade.

“As the DOE considers 26 February 2030 as the firm COD, AOE is hereby advised to submit, within 15 days from receipt of this letter, the timeline of the project development in line with the said COD,” the department stressed.

It added that “any changes in the project development timeline shall be subject to DOE’s review and approval and, if deemed necessary, the DOE may terminate the non-coverage issued to AOE, once a significant delay is established.”

Coal plants are still largely depended upon by the Philippine economy on the provision of baseload capacity, or the electric generating assets that can continuously run for long periods of time without interruption, hence, they are well-suited to provide steady and reliable supply of electricity to meet the constant demand of a growing economy; something that variable renewable energy cannot fully deliver at this point as investments for energy storage systems have yet to cross into ramp up cycles.

The other requirements imposed on MGen for the Atimonan plant primarily covers: the exclusive use of ultra-supercritical or higher efficiency lower emissions technology in the facility; the plant’s retirement by December 31, 2050; that the plant is capable of burning indigenous or low-grade coal; employment of workers from the community and pursue reforestation and carbon sink program to abate the facility’s emissions.

“Without prejudice to more stringent DENR environmental requirements, AOE shall undertake to plant trees and other vegetation to mitigate the carbon emissions of the plant,” the DOE noted, emphasizing that AOE “shall formulate and submit for approval a reforestation and carbon sink program using endemic/indigenous species to offset greenhouse gas (GHG) emissions.”

The department indicated that such warranted compliance to environmental policies will be in line with the Department of Environment and Natural Resources (DENR’s) GHG emissions reduction program and national greening program.

Specifically, the Meralco power firm is being required to “supply up to 5.0 million tree seedlings by 2035 for the use of government agencies in their sequestration efforts and fund P50 per seedling for development and implementation.”

The DOE further enforced that “together with the DENR and its reforestation program agencies, AOE shall regularly monitor the progress, viability and sustainability of the implementation of this undertaking.”