The Department of Energy (DOE) will launch a competitive bidding round for new coal development areas next week, moving to diversify the country’s fuel sources following the recent denial of a contract extension for the country's largest producer.

In a statement on Wednesday, Feb. 18, the DOE announced that the agency will open the pre-determined area (PDA) bid round on Feb. 27, offering 18 blocks in three provinces.

The DOE auction is headlined by 10 blocks on Semirara Island in Antique—the same region where the government recently declined to extend an existing coal operating contract.

The bidding also includes three blocks spanning Amulung and Iguig in Cagayan, and five blocks across Benito Soliven, Naguilian, and Cauayan in Isabela.

The push for new exploration comes as the government seeks to ensure energy security through “orderly and responsible” development of indigenous resources. By opening these identified mineable reserves to a transparent, competitive selection process, the DOE said the department aims to attract fresh investment and qualified operators to fill the production gap.

Energy Secretary Sharon Garin said any winning bidder must strictly adhere to the Coal Operating Contract framework and comply with rigorous regulatory safeguards.

These include coal mine safety and health rules, as well as mandatory guidelines for progressive rehabilitation and decommissioning.

Garin noted that the government’s priority is to uphold the rule of law while protecting national interests and host communities.

The department will accept application documents until April 28, with a pre-bid conference scheduled for March 19.

Officials stated that the process is designed to give all qualified bidders equal standing while maintaining strict post-award monitoring for environmental compliance.

While the agency auctions new coal assets, it is also advancing rural electrification through a ₱52 million microgrid project in Quezon Province. In partnership with Quezon II Electric Cooperative Inc., the department is deploying a hybrid power system to provide 24-hour electricity to the villages of Cabungalunan and Burdeos.

The ₱52 million project, financed under the DOE’s Locally Funded Project-Total Electrification Program, features a 120-kilowatt solar photovoltaic system and a 100-kilowatt battery energy storage system, supported by two 100-kilowatt diesel units.

The first phase will serve approximately 214 residents and is designed for expansion over the next 20 years.