THE Department of Energy (DOE) is continuing consultations with industry stakeholders on a coal transition policy aimed at addressing aging power plants, as well as delayed coal projects exempted from the government’s moratorium on new plants.
“We had a coal transition policy that we were supposed to release back in June. However, we are still conducting consultations with the industry,” Energy Undersecretary Rowena Guevara said Thursday.
The policy is needed as old coal-fired power plants suffer from breakdowns, derated operations and other reliability problems, raising concerns over energy security.
The government also needs to meet its renewable energy targets and nationally determined contributions under the Paris Agreement, Guevarra added.
In 2020, the DOE imposed a moratorium on endorsements for new greenfield coal-fired power plants. However, projects already in the agency’s pipeline were exempted.
Guevara said about 3 to 5 gigawatts (GW) of previously approved coal capacity have yet to be built, even though their developers were allowed to proceed under the exemption.
Some developers have started construction, while others have yet to move forward and continue operating older plants, she noted.
The proposed transition policy could include safeguards and penalties for developers that fail to fulfill their commitments.
The DOE is considering measures similar to those applied to renewable energy projects, which are subject to defined development timelines and work plans, Guevarra said.
The proposed measures are among the issues being discussed with stakeholders as the DOE seeks to balance the retirement of aging coal plants with the country’s energy security and clean energy commitments.