The nation is poised to unlock its untapped coal reserves with a bold new strategy from the Department of Energy. A proposed shift in contracting aims to dramatically speed up the process of getting coal from the ground to power plants, potentially reshaping the energy landscape.
Currently, securing a coal operating contract is a lengthy process, encompassing exploration and development within designated reservation areas. The new approach bypasses extensive preliminary exploration in areas where substantial, mineable coal deposits have *already* been confirmed by existing data.
This isn’t about opening up new frontiers for exploration; it’s about rapidly utilizing resources we already know exist. The Department of Energy believes significant coal reserves are waiting to be developed, shortening the time it takes to bring these vital resources online.
The proposed contracts will focus on “development and production” – meaning companies can move directly into mining operations, skipping the often-protracted exploration phase. Applications will be based on areas of interest nominated by companies, aligned with publicly announced areas open for bidding.
These contracts won’t be limitless in scope. Each agreement could cover up to fifteen coal land blocks within a single region, but crucially, all areas included must have verified coal data. The Department of Energy insists on confirmed reserves before granting access.
The duration of these contracts is designed to accommodate the complexities of coal extraction, ranging from ten to twenty years. A renewable period allows for up to twelve additional years, providing a substantial timeframe for full resource utilization.
This move comes at a critical juncture. The Philippines currently relies heavily on imported coal for approximately 60% of its power generation. While the nation simultaneously pursues ambitious renewable energy goals, securing domestic coal supplies offers a bridge to a more sustainable future.
The long-term vision remains a significant increase in renewable energy – aiming for a 35% share by 2030. However, this new contracting strategy acknowledges the immediate need for a reliable and accessible energy source during the transition.
