Critics decry 'loopholes' as DOE eases coal project moratorium
The coal moratorium, a policy meant to suspend new coal-fired power projects, is being weakened by new exemptions from the Department of Energy (DOE), drawing immediate criticism from environmental and industry analysts.
The Center for Energy, Ecology, and Development (CEED) raised concerns Friday, Oct. 17, about the DOE's advisory that establishes non-coverage for the policy, with CEED Executive Director Gerry Arances questioning the timing given recent supply issues.
“The DOE knows very well that recurring outages from coal and fossil fuel power plants have even prompted legislative inquiries and investigations on gaming, collusion, and even economic sabotage,” Arances said in a statement.
“We find it alarming that it now sets ‘exceptional circumstances’ as a blanket condition for non-coverage, when coal power plants and their proponents have been the primary culprit for outages for years and are thus capable of creating such conditions in bids to expand the use of coal,” he stressed.
The DOE advisory, released earlier this week, allows exemptions for new coal-fired power projects under several key conditions, including facilities intended for self-generation or those necessary for critical national needs.
Specifically, off-grid areas and facilities for the mining and processing of critical minerals for the energy transition are eligible to apply. On-grid facilities may also be allowed entry during an expected power shortage or crisis.
While the DOE states these exemptions will be subject to strict conditions, Arances warned the policy shift could compromise the country’s climate goals just as Manila prepares to submit a new Nationally Determined Contribution (NDC) target, its key commitment to reducing emissions.
“As it is, the advisory features a highly unambitious 2060 timeline, provides loopholes for new coal development, and opens up possibilities for the use of false alternative solutions such as fossil gas and other dangerous and unproven technologies,” Arances said.
“Filipinos need to be vigilant, as such policy directions mean trouble for our pockets and our climate survival,” he added.