Gov’t eyes coal mining shutdown
The government might train its gun on coal mines, with a potential nationwide shutdown eyed to fast-track the realization of the energy shift.
Michael Sinocruz, director for energy policy and planning at the Department of Energy (DOE), on Wednesday said the DOE was exploring the possibility of stopping the operations of coal mines across the country.
For this study, Sinocruz said the DOE teamed up with the United Nations Office for Project Services.
“I told them that we need to study the impact if we’re going to close down our coal mines and coal power plants,” he told reporters on the sidelines of the Philippine Energy Transition Dialogue 2025.
The study will cover the possible impact on workers, as well as livelihood activities in the host communities. This will likewise include alternatives to cushion the blow on the local economy and the energy sector.
“Part of the study should be how much money or funding do we need to protect this possible displacement of workers and even the livelihood of the community,” Sinocruz said.
Sinocruz added that the DOE would approach mining companies once the study is completed to ensure that the right alternatives would be laid out.
“So based on this study, we can have, or probably recommend policies for consideration of the Department of Energy or by the national government,” the official said.
Consunji-led Semirara Mining and Power Corp. (SMPC), the country’s largest coal producer, said that while it backs energy transition efforts, coal “remains the backbone of our baseload supply, ensuring affordable and reliable electricity.”
“Any move to phase it out will need careful study, timing and planning to ensure energy security and protect livelihoods,” the company said when sought for comments.
“We trust that the transition will be managed in a way that balances sustainability with the country’s energy and economic needs,” SMPC added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., warned that this move could “lead to more expensive electricity prices” coupled with job cuts affecting economic activities.
However, Ricafort also noted that this could “expedite” investments in renewables, such as solar, wind, hydropower and geothermal energy.
To recall, the DOE imposed a ban on new coal projects as it hopes to cut reliance on fossil fuels.
Coal remains the top fuel in the Philippine electricity generation mix, accounting for a whopping 62.5 percent.
Renewable energy, meanwhile, remains at 22.2 percent.
The government aims to raise the share of renewables in the power mix to 35 percent by 2030.
