By Sheldeen Joy Talavera, Reporter
THE DEPARTMENT of Energy (DoE) is planning to resume the coal auction, which includes Semirara island operated by the country’s largest coal producer, by the center of this yr, the Energy chief said.
“We have now postponed the Semirara bidding, but it surely may resume across the middle of this yr as we still have several things to repair,” Energy Secretary Sharon S. Garin told reporters late on Monday.
Last month, the DoE announced it should beat back the deadline for the submission and opening of bid documents for the coal auction originally scheduled for April 28.
The auction was postponed until further notice to be sure that all issues raised through the pre-submission conferences are “fully considered and addressed” before announcing the revised deadline, it said.
Launched in February, the bid round is offering three coal areas, which is estimated to carry around 207 million metric tons of coal reserves.
The auction covers the Semirara blocks in Antique, which carries about 160 million metric tons of reserves. The location is currently operated by Consunji-led Semirara Mining and Power Corp. (SMPC), which did not renew its 50-year coal operating contract.
SMPC is the country’s largest coal producer, accounting for 97% of domestic output, gaining its strong foothold within the sector through its flagship asset.
“That is the primary time for us to bid out an already existing coal mine. And it’s also the largest within the country,” Ms. Garin said. “So, we’re attempting to make one of the best offer that we will get, and one of the best offer that’s for the country.”
With the auction yet to happen, there are concerns floated by potential bidders resembling the duration of the contract resulting from the bidding, expected production volume, and the handling of existing equipment or facilities.
“We’re also studying to compel them to be sure that a certain minimum percentage must be sold to the Philippines, not exported,” Ms. Garin said.
Asked to comment, Michael T. Toledo, chairman of the Chamber of Mines of the Philippines, said the federal government’s planned resumption of coal auction is “a practical step for near-term energy security.”
“While the worldwide shift is toward critical minerals and renewables, coal stays a critical baseload anchor for the grid at once,” he told BusinessWorld.
Mr. Toledo said established domestic players and specific regional investors will likely show strong interest because these are proven, high-yield assets.
“Done transparently, this auction signals to investors that the federal government is taking a practical, dual-track approach to securing power while transitioning,” he said.
While coal dominates the Philippines’ power generation mix, the country imports greater than 90% of its requirements.
The country, nonetheless, is attempting to move away from fossil fuels by aiming to extend the utilization of renewable energy to cut back exposure to volatile global prices and reduce carbon emissions.