Philippines moratorium on coal projects will attract USD 30 billion in renewable energy investment
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Key Findings
The Department of Energy (DOE) has called for a moratorium on greenfield coal power plants. The DOE decision marks a clear break with past policies and comes as the Philippines prioritizes the need for more flexible and lower cost alternatives to thermal power baseload.
The Department of Finance’s leadership continues to make clear the aim to shift investors to clean energy resources and green technologies. They have also indicated their determination to make economic development more inclusive and communities more resilient.
Executive Summary
The moratorium on greenfield coal power plants means that new planned coal projects will no longer receive permits from the Department of Energy. This is a welcome development because power sector stakeholders can now prioritize modern renewable energy and storage projects that can deliver lower costs and price stability while delivering domestic energy security.
Compared with its Asian peers, the Philippines has uncompetitively high electricity prices. That means the new generation of deflationary renewables provide an immediate opportunity to improve the power system's cost-competitiveness.
In contrast with more developed global power markets, Southeast Asia and South Asia have been the last bastions of coal growth. The DOE’s new policy stance makes it clear that Philippine policymakers and industry leaders are now ready to embrace more cost-effective clean energy options.
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