To shift the country to renewable energy (RE) as well as prevent overburdening electricity consumers, the Department of Energy (DOE) is encouraging the early retirement and repurposing of existing coal-fired power plants.
The energy department said that to be able to reach the 50% RE target by 2040, coal-fired power plants should be retired while ensuring that a stable supply is ready amidst the transition to clean energy.
The DOE also lauded ACEN for being ahead as it already had its plan in place to retire the South Luzon Thermal Coal-fired Power Plant.
“This is consistent with our view that it must be voluntary and must make business sense in a power sector like the Philippines that is privately owned, market-driven, and un-subsidized. ACEN has our full support for this initiative, and we will explore ways to facilitate this program through access to climate financing,” said DOE.
Also acknowledged by the Energy Department were the initiatives of organizations like the Asian Development Bank, which combines public and private funding to retire coal-fired power facilities.
However, the DOE also believes that energy transition is beyond coal retirement.
“It also entails expanding our people’s access to electricity in remote islands, building a smart and green grid and improving the distribution systems, putting up more energy storage systems, and making energy affordable for all,” DOE said.
