The Department of Energy (DOE) is still considering whether to approve the certification for Manila Electric Company’s (MERALCO) subsidiary, MERALCO PowerGen Corporation’s (MGen) proposed 1,200-megawatt coal-fired power plant in Atimonan, Quezon.
According to a report by Manila Bulletin, the project, which is not covered by the 2020 coal moratorium, would be a major development for MGen.
To this, Energy Secretary Raphael P. M. Lotilla has not provided a clear indication of whether the certification will be approved, stating only that decisions will be announced once made.
While the moratorium on new coal plants remains in effect, coal projects committed before the moratorium—like the Atimonan plant—are still being considered, allowing coal development to continue until 2028.
The Atimonan project would involve an investment of USD 3 billion, and the facility would be equipped with ultra-supercritical (USC) boiler technology.
MGen has already completed land acquisitions necessary for the transmission lines to connect the facility to the main grid.
However, the project has faced delays since its initial power supply agreement (PSA) was nullified by a 2019 Supreme Court ruling, which mandated a competitive selection process (CSP) for all power supply contracts after June 2015. This led to MGen temporarily halting pre-development activities.
While MGen had considered shifting the project from coal to liquefied natural gas (LNG), this alternative was deemed unfeasible, particularly due to the challenges of setting up an LNG import facility in the area.
If approved, the Atimonan project would follow other coal developments recently greenlighted, including the 150 MW expansion of Aboitiz Power Corporation’s Therma Visayas Inc. facility.
Along with MERALCO and Aboitiz Power, Semirara Mining and Power Corporation (SMPC) is also expected to continue coal development.
