Coal moratorium to only cover yet-to-be-proposed projects

By Myrna M. Velasco – November 5, 2020, 6:00 AM
from Manila Bulletin

The moratorium on new coal-fired power projects will only cover yet-to-be-proposed investments, according to Energy Secretary Alfonso G. Cusi.

In a virtual press briefing, he classified that even the indicative projects will still have to be processed by the Department of Energy (DOE) and these may still secure the approval of the government; or some may be in for eternal ditch.

He qualified that the temporary halt on coal ventures will only be for new applications; and he said the declaration was made so investors will no longer waste time preparing or sending their applications to the DOE.

And the moratorium, to be formalized soon through a DOE advisory, will stay depending on what would be the power needs of the country moving forward.

“We’re not going to accept any new coal application. If they will just propose (a project) now, we will not accept that anymore. But for projects that are already in – the committed projects, we’re going to process them,” the energy chief stressed.

For the indicative projects, he emphasized that “it shall depend on what stage they’re already at,” with him adding that these applications will still be processed by the department but no certainty of approval for some of them.

“On what has been with us, that doesn’t mean, especially the indicative projects that they are approved

or not approved,” Cusi expounded.

Indicative projects are proposed power ventures already applied with the DOE, but these planned facilities either do not have complete permits, no financing or has not started engineering, procurement and construction (EPC) tendering process yet.

On the extreme call of some advocacy groups for the DOE or government to totally pull the plug on coal plants, Cusi said he can understand their position, but the policy of the State has to be anchored on the realistic energy needs of the country.

And Cusi asserted he is not totally closing doors for coal plant projects in the future, especially if the country’s economic growth will need new baseload capacity. But he said the preference will be highly efficient coal technologies that will also yield lower carbon emissions.

Cusi stressed “there are a lot of people lobbying that we should totally ban coal plants. So what we are saying here is: in our energy policy, we are going to do what is good for the country. It shouldn’t drastically say: stop coal plants! Because where will we get electricity, from hell?”

The mandated pause on coal-fired power installations, he said, will stay until such time that the country is not in need of additional baseload capacity – which is usually the major function of coal-fired plants in the power system.

“Are we going to lift that (moratorium)?  That would all depend on what could be the prevailing situation in the future and what is the need of the country,” Cusi pointed out.

He added “we’ve seen that we have enough supply of baseload and we’re looking at more flexible source like gas and geothermal, hydro and others. It’s that we’re balancing our sources.”