Moratorium may exempt coal expansion projects

Published December 28, 2020, 5:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/12/28/moratorium-may-exempt-coal-expansion-projects/

The blueprinted expansion projects in coal-fired power installations are being mulled to be excluded from the coal moratorium declaration of the Department of Energy, according to Director Mario C. Marasigan of the agency’s Electric Power Industry Management Bureau.

He told reporters that coal expansion is are among the key points of contention still being fleshed out in the Circular that the DOE will be issuing relative to the coal moratorium declaration.

The other ventures not covered by the moratorium are those that were classified “committed” projects; as well as the indicative projects that were already endorsed and had so far started groundwork at project sites.

“Our hierarchy is: the committed projects that already have endorsements, then we have committed and indicative projects that already have permits, endorsements and groundwork; then we are looking into the expansion projects of existing plants,” he noted, as to the scope of projects that shall not be covered by the moratorium.

On expansion ventures, he expounded that what’s being scrutinized by the DOE is if these were part of the original proposed plans of the project sponsors – but if not, then they shall be disqualified.

In the updated Power Development Plan (PDP), targeted coal project installations to year 2030 would still hover at 9,550 megawatts – although the build-up is apparently coming at a relatively slow pace versus other technologies like gas and renewables.

Marasigan said the energy department has not come up with any definitive list yet which power projects shall be excluded and which shall be covered by the moratorium, hence, the draft Circular to be issued by the DOE on this is still being fine-tuned.

“We have continuing simulations because there are existing projects with expansion plans, so we have to determine if the expansion projects are really part of the original plan and that they’re not just trying to evade the moratorium,” Marasigan said.

Energy Secretary Alfonso G. Cusi said he already approved the draft of the Circular for the moratorium, but he admitted the final form is still formulated by relevant bureaus at the department.

“The Circular is still being edited. What I approved was the draft and it’s still being edited,” he indicated, while also noting that the department’s preference now is a Circular issuance instead of the earlier plan of just issuing an advisory.

At this stage, the energy chief reiterated “basically, we’re not accepting anymore any new applications – we’re just processing now the committed projects as part of our PEP (Philippine Energy Plan), our national power development program until 2040.”

Cusi nevertheless admitted that since the coal moratorium will just be firmed up through a Circular, that can easily be changed or revoked by his successor.

“That will depend on the next administration. What we do here is not a law. If they (next administration) will open it, there’s nothing we can do about it,” he stressed.