By Manila Standard Business – May 7, 2024, 9:00 pm
Ex-Energy Secretary Alfonso Cusi
Former Energy Secretary Alfonso Cusi on Tuesday described the Department of Energy’s coal moratorium implemented in 2020 as a well-considered policy move despite criticisms.
Cusi said in a statement the recent grid alerts should not be hastily attributed to the coal moratorium without solid evidence.
“It’s crucial to understand that while the moratorium applied to new greenfield coal-fired power projects, existing brownfield and expansion initiatives, including those with secured financial backing, remained unaffected,” Cusi said.
Cusi said any delays or setbacks in power projects could not be directly linked to the moratorium. The moratorium was implemented for a more agile and adaptable power generation landscape, he said.
“At the time of its implementation, the grid boasted sufficient baseload capacities but required greater investments in mid-merit and flexible power generation capabilities,” he said.
Cusi said the moratorium aimed to align with the global momentum towards renewable energy transition while upholding the reliability and stability of the grid.
He also said encouraging inflexible power generation such as coal contradicts this strategic shift.
“Central to the moratorium’s objectives was the enhancement of grid reliability by augmenting the power system’s capacity to withstand disruptions while optimizing overall grid operations. It sought to bolster the power system’s responsiveness to fluctuations in demand and supply, facilitating the seamless integration of emerging technologies into the grid infrastructure,” he said.
Cusi cited the recent announcements by the Department of Energy of a forthcoming addition of more than 4,000 megawatts of renewable energy, conventional power plants and natural gas-based investments slated to become operational this year.
“These investments underscore the tangible outcomes of policy adjustments made during our tenure, demonstrating a tangible shift towards more sustainable and flexible energy solutions,” he said.