The Department of Energy (“DOE”) has issued an Advisory on the Non-Coverage to the Coal Moratorium Policy (“Advisory”), providing additional guidance on projects that may be exempted from the moratorium on endorsements for coal-fired power plants. The Advisory outlines additional conditions for both existing and new applicants seeking non-coverage.
In 2020, the DOE issued the Coal Moratorium Advisory on 22 December 2020 (“2020 Coal Moratorium”), which suspended endorsements for greenfield coal-fired power projects, subject to certain exceptions. Since its issuance, the DOE has received requests for clarification on the scope of non-coverage, including whether the policy applies to own-use facilities and new capacities in on-grid or off-grid areas.
The new Advisory provides specific conditions and requirements for projects already granted non-coverage as well as those applying for new exemptions, reinforcing the national policy of gradual transition toward renewable and low-carbon energy sources while maintaining energy security.
Projects with Existing Letters of Non-Coverage
Proponents with existing Letters of Acknowledgment of Non-Coverage from the DOE must:
- Commit to a guaranteed delivery or commercial operations date, which remains subject to DOE review in case of any changes in project timeline; and
- Prepare a time-bound transition plan to renewable or cleaner energy sources, ensuring conversion or retirement of coal-fired facilities not later than 31 December 2060, or an earlier date approved by the DOE.
New Applications for Non-Coverage
The following projects may be considered outside the coverage of the 2020 Coal Moratorium:
- Industrial parks developing coal-fired power plants for their own operations, provided locators in the Philippine Economic Zone Authority (“PEZA”) industrial parks secure PEZA endorsement;
- On-grid capacity additions allowed only under exceptional circumstances, such as a declared or imminent power crisis or anticipated supply shortage;
- Off-grid coal-fired power projects; and
- Own-use coal-fired power projects for the mining or processing of critical minerals that support energy-transition projects.
All proponents must apply for and obtain a Letter of Acknowledgment of Non-Coverage from the DOE prior to implementation.
Transition and Compliance Requirements
Both existing and new proponents are required to submit transition and retirement plans consistent with the 2060 phase-out timeline.
The Advisory took effect upon posting on the DOE website on 14 October 2025.
The Advisory refines the operational scope of the 2020 Coal Moratorium, providing for limited, strategic exemptions while upholding the Philippines’ long-term energy-transition objectives. It underscores the government’s commitment to ensuring a balanced approach to energy security and decarbonization.
The Advisory on the Non-Coverage to the Coal Moratorium Policy may be accessed through this link.