Tue Sep 10 16:07:00 UTC 2024: ## DMCI Power Calls for Coal Moratorium Exemption for Off-Grid Areas
**MANILA, PHILIPPINES –** DMCI Power Corporation, a leading off-grid power provider in the Philippines, has called for an exemption from the Department of Energy’s (DOE) coal moratorium policy for projects serving remote areas.
DMCI Power Chairman Isidro Consunji argued that coal-fired power plants are the most cost-effective option for off-grid communities, where diesel power, currently used by small power utilities groups (SPUGs), is significantly more expensive.
“The moratorium should not include the SPUG,” Consunji stated, adding that “coal is the cheapest fuel. If you want, don’t add more coal plants but don’t kill them either.”
He highlighted the difference in electricity rates between coal and diesel-powered plants, citing their Masbate plant which charges P9 per kilowatt hour compared to P23 for diesel-powered options. “Don’t prohibit coal. You can do that for on-grid areas but not for off-grid because people will suffer. Instead of paying just P9 or P10, they will pay P23,” he said.
Consunji also pointed out that DMCI Power’s Palawan coal plant, which began operations in August 2023, was pre-approved by the DOE before the moratorium was implemented. He expressed concern about the impact of the policy on SPUGs, who often lack the financial resources to invest in alternative energy sources.
The DOE’s moratorium policy, issued in 2020, aims to accelerate the transition towards cleaner energy sources. While the policy does not ban existing coal-fired power plants, it restricts new projects.
However, the DOE has clarified that the policy does not cover existing and operational facilities, committed projects, existing power plant complexes with expansion plans, and projects with substantial progress, including signed land acquisition agreements and approved permits from local authorities.
Despite the exemption provisions, DMCI Power believes that the moratorium’s impact on off-grid areas should be reevaluated, arguing that it could hinder the provision of affordable electricity to underserved communities.
DOE Secretary Raphael Lotilla, emphasizing the importance of energy diversification, acknowledged the challenges in balancing energy security and environmental concerns.
“Diversification of energy sources is critical to energy security. Unfortunately, we get pilloried for favoring solar and wind over coal and get charged for favoring coal over renewable energy. This leaves us with a reassuring feeling that we are getting the damn thing right,” Lotilla said.
This latest development highlights the ongoing debate surrounding the future of coal in the Philippines, as the country seeks to balance energy affordability, accessibility, and environmental sustainability.
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