The Marcos administration is weighing the reversal of the government’s restrictive coal policy as the country grapples with the dual pressures of surging summer demand and volatile global energy prices.

Energy Secretary Sharon Garin told reporters on Monday, April 20, that the Department of Energy (DOE) is reviewing the current moratorium on new coal-fired power plants to determine if private developers should be allowed to resume coal-based projects.

DOE’s latest statement signals the potential shift for an administration that has otherwise tethered its long-term energy security to a transition toward renewable sources.

While Garin reaffirmed the government’s commitment to a cleaner energy mix, she noted that the immediate priority is ensuring grid stability.

The DOE chief explained that the government is evaluating whether expanding coal capacity is a more viable short-term solution than relying on diesel, which is more susceptible to price swings in the international market.

Garin noted that while diesel is primarily a concern for the transportation sector, it remains a factor in the power generation landscape that the government hopes to minimize.

The DOE is now exploring several avenues to bridge the supply gap, including natural gas, renewables, and nuclear energy, but Garin admitted that coal remains a serious contender in the current review. Any leniency regarding the coal moratorium would come with strict caveats.

Under current guidelines, coal can be utilized to fill critical gaps during energy crises, but officials insisted that these plants must eventually integrate into a broader transition plan toward cleaner fuels.

The policy review comes as the country enters the peak of the summer season, a period typically characterized by strained power grids and higher electricity costs.

Meanwhile, Energy Undersecretary Mario Marasigan sought to downplay fears of immediate shortages, asserting that the national supply remains sufficient to avoid the dreaded “yellow” or “red” alerts that indicate thinning reserves.

Marasigan projected that peak demand for the Luzon grid will reach approximately 15,683 megawatts this season. Given that the highest recorded demand so far this year stands at 12,695 megawatts, the government maintains a buffer of more than 2,700 megawatts. The DOE expects demand to hit its absolute zenith by the third week of May.

To prevent the localized blackouts that have plagued the country in previous years, Marasigan said the government front-loaded maintenance schedules for major generation facilities. This proactive approach is intended to avoid the kind of unplanned outages recently seen at liquefied natural gas units in Batangas.

The outlook for the Visayas region remains more precarious. Marasigan noted that the central islands remain heavily dependent on power imports from both Luzon and Mindanao.

Ensuring a steady flow of electricity to the Visayas requires careful management of the interconnections, particularly as Mindanao currently holds a surplus available for export to its neighbors.

For now, the government's strategy hinges on a delicate balance between meeting immediate cooling needs and maintaining its international reputation for climate-conscious energy planning.