Aging and inefficient coal-fired power plants across the country may soon face voluntary retirement or repurposing as the government intensifies its shift toward renewable energy (RE).

In a statement on Friday, May 8, the Department of Energy (DOE) said that it is conducting a rigorous assessment of the operational performance of existing coal facilities, particularly those prone to frequent unplanned outages, to protect consumer interests.

Under the review, the DOE is identifying candidates for decommissioning or transition to cleaner technologies while simultaneously auditing “indicative” coal projects from the pre-moratorium era to determine which developments are no longer feasible.

The technical evaluation comes as the DOE reaffirmed that the country’s coal moratorium policy, first imposed in December 2020, remains in effect and will not be lifted despite persistent calls from some sectors to allow new developments.

The DOE maintained that there is no compelling reason to suspend the ban despite the ongoing energy crisis, asserting that the current pipeline of already committed coal projects—those granted certificates of non-coverage prior to the deadline—is sufficient to maintain grid reliability in the near term.

The department emphasized that the window for new coal endorsements closed in October 2020, although specific exceptions remain for off-grid areas, critical mineral processing facilities, and projects essential to preventing imminent power supply crises.

By keeping the moratorium in place, the government aims to signal a clear path toward the large-scale expansion of RE, which remains the central pillar of the Philippines’ long-term energy security strategy.

“While coal continues to play a role in the current energy mix, its use is being carefully managed. In parallel, the government is intensifying efforts to expand RE capacity, recognizing its long-term benefits in terms of affordability, reliability, energy security, and environmental sustainability,” the DOE said.

Ultimately, the agency believes that the combination of existing approved capacity and an accelerated push for renewables will meet the country’s growing electricity demand without the need to return to new coal-fired investments.