The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business group, is backing the Department of Energy’s (DOE) proposal to lift the moratorium on new coal-fired power plants, describing the move as a pragmatic necessity to safeguard energy security and industrial competitiveness.

In a statement on Wednesday, April 22, the PCCI said the group supports Energy Secretary Sharon Garin’s recent announcement that the agency is reviewing the 2020 ban on greenfield coal projects. The shift in policy comes as the Philippines grapples with a widening supply gap and the volatility of global fuel prices, which have been further strained by persistent geopolitical tensions in the Middle East.

Ferdinand Ferrer, PCCI president, said that while the long-term objective remains a transition to renewable energy, the immediate economic reality dictates a more flexible approach.

He noted that the country’s economy cannot function under a cloud of uncertainty regarding power availability and that the immediate priority must remain the stability and affordability of the national grid.

“Our economy cannot run on uncertainty. While the transition to renewable energy remains our long-term goal, our immediate priority must be the stability and affordability of our power grid,” Ferrer said.

Ferrer, however, clarified that the chamber’s support is contingent on the use of modern, high-efficiency technologies that can reconcile power requirements with the government's environmental commitments.

The PCCI's stance highlights the growing concern among local industries regarding baseload reliability. As the manufacturing sector seeks to expand, a steady, 24/7 power supply is seen as essential to avoiding the grid alerts and rolling outages that have historically hindered production.

Furthermore, the chamber argued that high electricity rates continue to serve as a significant barrier to attracting foreign direct investment.

By integrating strategic, efficient coal projects into the mix, the PCCI believes the country can lower generation costs for both micro-businesses and large-scale industrial players.

David Chua, PCCI energy director, said that the debate should not be framed as a binary choice between fossil fuels and green energy.

Instead, he framed the lifting of the moratorium as a way to ensure businesses remain competitive and households are shielded from the escalating costs of power.

The group also underscored the role of transition fuels, including natural gas and liquefied natural gas, in providing the flexibility needed to manage emissions while maintaining a robust energy infrastructure.

The chamber is calling on the Marcos administration to pursue a data-driven roadmap that maintains adequate baseload capacity while simultaneously accelerating the rollout of renewable energy, storage solutions, and grid modernization.

Ferrer concluded that energy security is synonymous with national security and that the policy shift serves as a vital bridge to maintain economic momentum as the country builds out its sustainable energy capacity.

With power costs in the Philippines remaining among the highest in Southeast Asia, the business community views the reintroduction of coal investments as a safeguard against the unpredictable price swings of the international oil and gas markets.