At least 3 coal plants cease operations
By Jordeene B. Lagare – July 5, 2021
from The Manila Times
At least three coal-fired power plant projects in the provinces of Cebu and Quezon have discontinued operations, according to the Department of Energy (DoE).
In a correspondence, Mario Marasigan, director of the DoE’s Electric Power Industry Management Bureau, said the agency has delisted seven coal-fired power projects “due to non-submission of the required monthly power project updates.”
Marasigan said that SMC Global Power Holdings Corp.‘s two circulating fluidized bed coal-fired power plants in Pagbilao and Sariaya in Quezon, with capacity of 600 megawatts (MW) each, as well as its 300-MW coal-fired power plant in Malabuyoc, Cebu, discontinued operations.
The expansion project of San Miguel Consolidated Power Corp.s’ 300-MW Malita power plant in Malita, Davao Oriental; Merbau Corp.‘s 600-MW coal-fired thermal power plant in Pinamucan Ibaba, Batangas City; and Ozamiz Power Gen Inc.‘s 300-MW coal-fired power plant in Ozamiz City, Misamis Occidental were discontinued.
Meanwhile, Orion Pacific Prime Energy Inc.‘s 1,200-MW coal-fired thermal power plant is undergoing review as to whether or not it will be exempted from the moratorium on new coal projects.
“Regarding the clarification on the issuance of endorsements of relevant RDCs (regional development councils), the DoE is currently reviewing the specific process and will inform you of the official position once done with the review,” said Marasigan in a letter to Center for Energy, Ecology and Development (CEED).
As for the 2×668-MW coal-fired power project of Atimonan One Energy Inc., a subsidiary of Meralco PowerGen Corp., Marasigan said the project proponent is “currently in communication with lenders to extend the loan facility given the challenges they have encountered in securing the power supply agreements.”
At that time, Energy Secretary Alfonso Cusi said the agency would no longer accept new endorsement applications for greenfield coal power plants or those coal facilities that are yet to be constructed.
Committed coal power projects, and existing power plant complexes that have firm expansion plans and existing land site provision are not affected by the DoE advisory.
Marasigan noted that committed power projects refer to the projects that have secured financial closure.
The coal ban also exempts indicative power projects with substantial accomplishments, particularly those that already have signed and notarized acquisition of land or lease agreement for the projects, and approved permits or resolutions from local government units (city/municipality, province) and the RDC where the power plants will be located.
The Power for People Coalition (P4P) said the experience of the Sariaya, Pagbilao, Malabuyoc and Atimonan coal projects are telling of better things to come for coal-affected communities and the renewable energy sector.
“The cancellation of several coal projects this year is already a sign to power companies and financiers that coal is simply bad news they should now be running away from,” said Gerry Arances, convenor of P4P.
Father Warren Puno, director of the Diocese of Lucena’s Ministry on Ecology, said “we call on BPI (Bank of the Philippine Islands) to stand by its proclamation that it intends to eventually phase out its coal loans by withdrawing from coal, especially from the Atimonan project.”
