The Department of Energy (DOE) is exploring the possibility of a nationwide shutdown of coal mines and coal-fired power plants as part of the country’s energy transition efforts.

DOE energy policy and planning director Michael Sinocruz said the agency has partnered with the United Nations Office for Project Services to study the potential impact of closures on the economy, power supply, and affected communities. The study, which may begin next year, will cover all coal mines and coal plants in the country and assess the funding needed to support displaced workers and host communities.

“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 on the sidelines of the Philippine Energy Transition Dialogue 2025. He added that the DOE plans to engage with coal mining companies once the study is completed to ensure that alternatives are in place.

Sinocruz emphasized that any move to phase out coal will require careful study, timing, and planning to ensure energy security. The results of the study could provide a basis for policy recommendations for consideration by the DOE or the national government.

Coal currently accounts for 62.5% of the country’s power generation mix, while renewables contribute 22.2%. The DOE previously imposed a moratorium on new coal projects in 2020, though the policy did not cover existing or already committed plants.

Semirara Mining and Power Corp. (SMPC), the country’s largest coal producer, said it supports the government’s energy transition push but stressed that coal remains the backbone of baseload supply, ensuring affordable and reliable electricity. “We trust that the transition will be managed in a way that balances sustainability with the country’s energy and economic needs,” the company said.

Do you think the Philippines should push ahead with a coal phaseout even if it risks higher power costs in the short term?

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