THE Department of Energy (DOE) on Wednesday said that it is bidding out on Feb. 27 a total of 18 coal blocks across three specific geographic areas for development and production to support energy security and a transition agenda under a transparent and competitive process.
A coal block refers to a specific geographic area containing coal reserves that has been designated for exploration or mining.
The auction follows a Department of Justice (DOJ) opinion that existing 50-year contracts, such as the one for Semirara, cannot be renewed and must instead be subjected to public bidding.
“Overall, the government’s priority is to uphold the rule of law while safeguarding our indigenous energy resources,“ Energy Secretary Sharon Garin said in a statement. “Any future contract or continuation of operations must strictly comply with constitutional limits and demonstrably protect both the national interest and our host communities.“
The pre-determined area (PDA) bid round on Feb. 27 is a competitive process where the government offers identified resource areas, and qualified parties participate under a transparent evaluation and award mechanism.
The three PDAs with their respective coal blocks are:
– Semirara Island in Antique, the primary area consisting of 10 coal blocks. It currently accounts for nearly 94 percent of the country’s domestic coal production.
– Isabela, which has five coal blocks across the municipalities of Benito Soliven, Naguilian, and Cauayan.
– Cagayan, which comprises three coal blocks spanning the municipalities of Amulung and Iguig.
The auction launch on Feb. 27 will mark day 1 of the bidding program, with interested applicants given 60 calendar days to submit their application documents.
Deadline for submission is 11:00 a.m. on the 60th day, followed by the opening of applications at 1:00 p.m. on the same day.
A pre-submission conference will be held 20 days after launch to address bidder inquiries and clarify requirements.
Coal operations remain subject to strengthened governance, safety and environmental standards as part of the country’s energy transition pathway, the DOE said, adding that it continues to review and enhance related regulatory frameworks to align with evolving energy security, environmental and economic priorities.
These include reinforcing mine safety and environmental standards; institutionalizing progressive rehabilitation and coal mine decommissioning requirements; and strengthening compliance obligations on geotechnical monitoring, slope stability assessments, occupational health and safety protocols, environmental protection, and reporting.
Since October 2020, the DOE has maintained a moratorium on endorsements for “greenfield“ (new) coal-fired power projects to shift the energy mix toward renewables.
It has shifted from voluntary to mandatory coal retirement planning. All coal-fired power plants must have a time-bound transition plan to retire or convert to clean fuel alternatives no later than Dec. 31, 2060.
Recent advisories allow new coal capacity under “exceptional circumstances,“ such as imminent power shortages, off-grid projects, or own-use facilities for processing minerals critical to the energy transition.
The agency is studying the socioeconomic impacts of closing all coal mines and plants to ensure a “just transition“ for affected workers and communities.