The Department of Energy (DOE) has teamed up with the United Nations Office for Project Services (UNOPS) to study the impact of the country’s energy transition on the local coal industry. The study will look into the effects of closing down coal plants and mines.
“We have a partnership with UNOPS. I told them we need to study the impact if we’re going to close down our coal mines and coal power plants,” said Michael Sinocruz, director for the DOE’s Energy Policy and Planning Bureau.
The study will identify the number of workers and communities that could be affected by the energy transition and determine potential alternatives for them. It will also calculate the funding needed to protect against displacement.
“Part of the study should be how much money or funding we need to protect against this possible displacement of workers and even the livelihoods of the community,” Sinocruz said on the sidelines of the Philippine Energy Transition Dialogue.
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Semirara Mining and Power Corp., the country’s largest coal mining company, said it supports the DOE’s efforts.
“For now, 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 in a statement.
“We trust that the transition will be managed in a way that balances sustainability with the country’s energy and economic needs,” it said.
The DOE has not yet initiated talks with mining companies as the study has not been completed.
“We are planning to do that once the study is completed because we need to have a plan for them,” Sinocruz said.
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“Based on this study, we can have, or probably recommend, policies for consideration by the Department of Energy or by the national government, providing alternatives for those that will be affected by this transition,” he said.
Sinocruz said the study was initiated due to global pressure to phase out coal because of the Conference of Parties (COP) climate summits.
“If we’re going to adopt such a pathway, what will be the impact on us?” he said.
The DOE received approval for the study from UNOPS and expects it to start next year.
“I don’t know how long it will take to conduct the study,” Sinocruz said.
“I told them it should be nationwide. So we need to look at all the coal mines in the Philippines and the livelihoods within the communities that will be affected,” he said.
The Philippines is looking to accelerate its energy transition by retiring coal plants and replacing them with renewable energy.
Coal accounts for 62.5 percent of the country’s power generation capacity, while renewable energy makes up 22.2 percent. The remaining capacity comes from natural gas (14.2 percent) and oil-based sources (1.1 percent). The country aims to increase its renewable energy share to 35 percent by 2030.
By Alena Mae S. Flores | September 3, 2025
Via Manila Standard – https://manilastandard.net/business/314638386/doe-to-assess-impact-of-coal-plant-closures.html
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