Philippines: Coal-fired power plants up next for DENR review

Philippines: Coal-fired power plants up next for DENR review

THE Environment department may start in January an audit of the
environmental compliance certificates (ECC) issued to all coal-fired power
projects, with the aim of minimizing the Philippines' heavy reliance on
"dirty" energy sources.

"We are crafting guidelines for the audit. [H]ope we can be ready by
January," said Environmental Management Bureau Director Gilbert C. Gonzales
in a mobile message on Thursday when asked on the department's plans for the
coal-fired plants.

Earlier, then Officer-in-charge Undersecretary Leo L. Jasareno said that the
department intended to conduct the audit in September, at a time when the
review of metal mines' environmental management practices was ongoing.

The audit will cover all coal-fired power projects -- the 12 in operation,
12 under construction, 13 that have not started construction but issued
ECCs, and two with pending applications.

One of more than a hundred required permits to build a coal-fired plant is
to secure an ECC issued by the Department of Environment and Natural
Resources (DENR).

"[G]ranting so many coal ECC is getting us stuck with dirty energy for 25
years," said Environment Secretary Regina Paz L. Lopez in a text message on
Thursday.

Coal-fired plants, according to the Department of Energy on its Web site,
account for 31.5% of the country's installed capacity and 34.2% of total
dependable capacity as of end-2015.

Oil-fired and hydro plants each accounted for 19.3% of nationwide installed
capacity; natural gas plants made up 15.3%; geothermal facilities, 10.3%;
wind, 2.3%; biomass, 1.2%; and solar contributed 0.9%.

She claimed renewable energy is increasingly viable because the underlying
technologies are "going to be much cheaper in the next three to four years
and some say even now."

"If we can have cheaper energy which doesn't damage health or the
environment, isn't that the better option?" added Ms. Lopez.

Meanwhile, Ian C. Rivera, the Philippine Movement for Climate Justice's
(PMCJ) National Coordinator, said the audit was a first step in encouraging
more investment in renewable energy.

"The economic viabilities are already proven but the problem is it cannot be
mainstream (and cannot) at present dislodge coal because of the power supply
contracts," Mr. Rivera told reporters on Thursday on the sidelines of a
briefing in Quezon City.

The PMCJ, a national coalition of 130 organizations, reiterated its earlier
call for the government to "immediately implement a moratorium on the
issuance of permits of new coal-fired power plant applications, including
coal mining and coal stockpiles."

Ms. Lopez earlier expressed plans to diversify the country's energy mix
which is heavily weighted towards coal in favor of a shift to renewable
energy.

The secretary also assured that her family's business group, which controls
geothermal energy companies First Gen Corp. and Energy Development Corp.,
will not affect her decision as a regulator.

"We are encouraging all. We're not biased to coal," said Energy Secretary
Alfonso G. Cusi in remarks e-mailed to reporters by the Department of Energy
on Thursday.

The department's crackdown against miners has led to plans to review all
ECCs including those of country's biggest power firms, with an early target
being Semirara Mining & Power Corp., which belongs to both industries under
scrutiny.

The Consunji-controlled firm operates a mine on Semirara Island in Antique
province from which it gets coal to run the 764-megawatt plant in Calaca,
Batangas that is operated by its subsidiary, SEM Calaca Power Corp.

The review particularly questioned the alleged failure of Semirara Mining's
Molave Coal Mine Expansion Project to prevent the pollution of bodies of
water and drainage systems.

However, the coal firm earlier disclosed to the bourse a report from the EMB
in Region IV which shows that the firm is in "full compliance to
environmental laws."

The DENR's audit identified 20 miners that may face suspension. Those either
suspended or recommended for suspension make up nearly three-fourths of the
country's 41 metal mines. The agency earlier suspended 10 mining operations
before the audit in July.

The department plans to release the result of its audit within the first
week of the month, after which it plans to go ahead with an environmental
review of the country's 65 nonmetal mines.

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Ref:
http://www.bworldonline.com/content.php?section=Economy&title=Coal-fired-pow
er-plants-up-next-for-DENR-review&id=135870

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com