Former Energy Secretary Alfonso G. Cusi believes in upholding the coal moratorium implemented in 2020, viewing it as a crucial policy that maps out the country’s greener future.
In a report by the Manila Bulletin, the former Department of Energy (DOE) secretary defended the moratorium, stressing that the halt in the investments in coal plants was a calculated decision and that the recent alert should not be chalked up to the postponement.
In response to the criticisms labeling the suspension as a failure, Cusi said that there should be solid evidence before attributing recent grid alerts to the coal moratorium. He clarified that the moratorium primarily targeted new greenfield coal-fired power projects while existing brownfield and expansion initiatives remained unaffected.
Additionally, he believed in the possibility of additional baseload coal capacities by qualified developers, saying that this could be applied to projects that had already begun with permitting and other pre-development activities before the moratorium took effect four years ago.
The rationale behind the moratorium, according to Cusi, was the need for a more adaptable power generation landscape.
Furthermore, because the system had a stable baseload capacity at the time of its implementation, it required more expenditures in mid-merit requirements to achieve flexible power generation.
Coal power is still considered a solution for some players amidst the nation’s power supply challenges. Aboitiz Power Corporation was one of the firms that considered coal capacity expansion in the Visayas grid.
Meanwhile, the investment arm of the Manila Electric Company, Meralco PowerGen, had also mulled over a possible greenfield coal plant in Atimonan, Quezon.
Cusi also acknowledged the recent DOE announcements regarding significant investments in renewable and gas-fed power facilities, which are expected to alleviate supply issues experienced in Luzon and Visayas grids during El Niño-stricken summer months.
