The Department of Energy (DOE) has widened exemptions to its coal moratorium, opening the door for new coal-fired power projects under strict conditions.

In a new advisory, the DOE outlined five specific criteria that permit continued coal development, largely focusing on self-generation and critical national needs. These exemptions apply to industrial parks, such as those in the Philippine Economic Zone Authority (PEZA), planning to use the power solely for their own operations.

Also exempt are projects located in off-grid areas and facilities dedicated to the mining and processing of critical minerals for the energy transition. On-grid facilities—those connected to the main transmission system—will only be permitted if the DOE determines there is an expected power shortage or an imminent power crisis.

According to the DOE, the policy adjustment follows a series of inquiries regarding self-generating and new coal facilities. Despite the flexibility, the original ban remains in place, the DOE pointed out.

The agency noted that this mandate will require all newly approved coal plants to have a “time-bound transition plan to renewable or clean energy sources,” with mandatory retirement or conversion to clean fuel alternatives no later than Dec. 31, 2060.

Meanwhile, projects that have already secured a letter of non-coverage must remain on track with their expected delivery dates; any new schedule requires a DOE review.

Moreover, the DOE stressed that all new applications must undergo formal registration and include clear, detailed plans to transition away from coal.

The policy adjustment takes effect immediately, though the DOE will continue to study and develop a final timeline for the comprehensive transition and retirement of these plants.

The original 2020 moratorium was put in place to halt new coal approvals, exempting only projects already committed or under construction.