CEBU CITY, Philippines — The Department of Energy is keeping the door open for selected coal-fired power projects in Cebu as worsening electricity shortages threaten businesses, households and economic growth across the Visayas.
Energy Secretary Sharon Garin said exceptions to the Philippines’ existing coal moratorium may be considered when energy security is at risk, as authorities prepare additional generating capacity to meet the region’s rapidly expanding electricity requirements.
During the Cebu Energy Summit on October 12, 2026, Garin identified two proposed coal-fired projects with a combined capacity of 257 megawatts (MW).
The projects consist of a 150-MW expansion of Therma Visayas Inc.’s facility in Toledo City, targeted for commercial operation in 2028, and a 107-MW project associated with Cebu Energy Development Corp., targeted for 2029.
The government is also considering gas-fired power plants, battery energy storage and temporary generating facilities to stabilize supply while awaiting longer-term projects.
However, the move has reignited a difficult debate over energy security and the country’s transition toward cleaner sources of electricity.
Can Cebu prevent another cycle of brownouts without committing the region to decades of additional fossil-fuel dependence?
DOE Says Coal Moratorium Remains in Place — But Exceptions Exist
The Philippines introduced a moratorium on endorsements for new coal-fired power projects in 2020 as part of efforts to encourage cleaner energy investments.
The policy does not represent an unconditional ban on every coal-related project.
Certain developments already in the pipeline, committed expansion projects and other qualifying facilities may be eligible for exemptions or declarations of non-coverage.
In October 2025, the DOE clarified that exceptional circumstances could justify new on-grid coal capacity, including an imminent electricity shortage that could cause severe regional disruption.
Garin reiterated during the Cebu summit that energy security is one of the considerations covered by these exemptions.
But the DOE has not announced the wholesale lifting of the moratorium.
In an official May 2026 statement, the department specifically reaffirmed that the policy remained in force.
That distinction matters: considering an exemption for a qualifying development is different from reopening the entire Philippine market to unrestricted construction of new coal power plants.
Projects must still satisfy applicable DOE rules, environmental requirements, financing arrangements and other regulatory obligations.
Cebu Plans Two Coal Projects Worth 257 Megawatts
The proposed additions would expand the region’s access to electricity generated from facilities designed to operate consistently.
The projects identified at the summit are:
Therma Visayas expansion — 150 MW
The proposed expansion of the Therma Visayas coal-fired facility in Toledo City is targeted for commercial operations in 2028.
The project is expected to strengthen Cebu’s local generation capacity and reduce reliance on imported electricity from other parts of the interconnected Visayas grid.
However, earlier DOE project lists have described a Therma Visayas expansion of 169 MW, demonstrating that published project capacities have changed across different planning reports.
The 150-MW figure reflects the latest capacity cited by Garin during the October summit.
Cebu Energy Development Corp. project — 107 MW
The second proposed coal-fired project is targeted for commercial operations in 2029.
Together with the Therma Visayas expansion, it would bring the announced additional coal capacity to 257 MW.
Neither target date should be treated as a guarantee of completion.
Power projects can face delays involving permits, financing, equipment procurement, construction and grid connection.
Likewise, the summit announcement does not establish that all required approvals have been issued or that construction of both projects has been completed.
Cebu’s Electricity Demand Is Growing at an Alarming Pace
The proposals come as Cebu’s electricity requirements continue to increase.
According to figures presented by Garin, the province’s electricity demand is growing at approximately 14% annually, compared with roughly 6% in other parts of the Philippines.
Cebu accounts for about 42% of total Visayas electricity demand, making it the region’s largest power-consuming area.
At the summit, officials cited approximately 993.2 MW of installed generation capacity within Cebu.
That compares with average demand of around 839 MW and peak demand reaching 1,254 MW.
The gap between local installed capacity and peak demand is approximately 261 MW.
This calculation does not mean Cebu’s grid is short by exactly 261 MW at every moment.
Cebu is connected to the larger Visayas power system and can receive electricity generated elsewhere.
Furthermore, installed capacity does not necessarily equal the output available during a particular hour.
Plants may be unavailable because of maintenance, unexpected outages, fuel constraints or other operating problems.
Still, the figures illustrate why Cebu is vulnerable when the broader regional grid experiences a series of simultaneous generating-unit outages.
Yellow and Red Grid Alerts Raise Brownout Concerns
The Visayas has experienced recurring supply problems associated with generating plant outages and insufficient reserve capacity.
A yellow alert signals that operating reserves have fallen below the required level.
A red alert indicates more severe supply conditions that can increase the risk of rotating power interruptions.
When several major power plants are unavailable at the same time, grid operators must secure enough functioning capacity to meet demand and maintain system stability.
These difficulties have affected consumers and businesses that depend on dependable electricity.
Manufacturing companies, cold-storage businesses, hotels, restaurants and commercial establishments may incur additional costs when they must use backup generators.
For households, interruptions can disrupt work, education and daily activities.
Hospitals and essential services face particularly serious reliability concerns.
Garin warned that tight supply conditions could continue through 2027 while the region waits for major new generating facilities.
The warning describes a risk scenario, not a declaration that every Cebu household will experience continuous brownouts until 2028.
Six Power Barges and Battery Storage Could Provide Temporary Relief
To bridge the gap, the DOE is pursuing temporary power sources.
Garin said the government plans to deploy six power barges with a combined capacity of approximately 300 MW across the Visayas.
One 50-MW barge is expected to be assigned to Cebu.
The barges could begin arriving as early as the first quarter of 2027, depending on contracts, logistics and deployment readiness.
The department also discussed approximately 250 MW of battery energy storage capacity for Cebu, Bohol, Leyte and Panay.
Batteries can help stabilize electricity supply by storing energy when it is available and discharging it during periods of higher demand or lower generation.
Such systems can also support the integration of renewable energy, especially solar electricity.
However, battery capacity measured in megawatts does not establish how long the batteries can supply that output.
Storage duration depends on the system’s energy capacity, measured in megawatt-hours.
Likewise, power barges can help manage immediate shortages but may carry significant fuel and operating costs.
Temporary resources can reduce some risks, but they are not substitutes for a comprehensive long-term electricity strategy.
DOE Also Considers 500-MW Gas Plants in Cebu and Panay
Coal is only one part of the department’s proposed Visayas power plan.
The DOE is also examining gas-fired generating capacity that could provide flexible output when electricity demand changes or renewable energy production declines.
At the Cebu summit, Garin identified a proposed 500-MW gas-fired plant for Cebu and another 500-MW facility for Panay.
The projects are being considered for possible operation between 2028 and 2030.
Gas-fired plants may be able to adjust generation more flexibly than conventional coal units, making them useful for balancing variable solar and wind output.
However, natural gas is also a fossil fuel.
Its climate impact depends on plant efficiency, methane leakage, fuel sourcing and other factors.
For the Visayas, the choice of future generating facilities will influence not only electricity reliability but also energy costs and emissions over many years.
The ‘Clean Coal’ Claim Needs Important Scientific Context
One of the most significant remarks from the summit concerned the potential use of supercritical coal technology.
Garin described newer high-efficiency coal technology as producing almost no emissions.
That characterization requires important clarification.
Supercritical coal plants operate at higher temperatures and pressures, allowing them to generate electricity more efficiently than many older coal-fired facilities.
Higher efficiency can reduce the amount of coal burned, and therefore carbon dioxide emitted, for each unit of electricity produced.
But supercritical technology does not eliminate carbon dioxide emissions.
International Energy Agency research has estimated emissions of approximately 740 kilograms of carbon dioxide per megawatt-hour for a state-of-the-art supercritical plant, compared with roughly 900 kilograms for a typical subcritical coal facility.
Actual emissions vary according to plant design, fuel and operating conditions.
Pollution-control equipment can reduce particular pollutants, including sulfur dioxide, nitrogen oxides and particulate matter, but it does not automatically remove carbon dioxide.
For this reason, describing supercritical coal as nearly emissions-free would mislead readers.
Newer coal technology may be more efficient, but it remains a significant source of greenhouse gas emissions without effective carbon capture.
Environmental Groups Warn Against Expanding Coal Exemptions
The DOE’s policy flexibility has previously attracted criticism from environmental advocates.
The Center for Energy, Ecology, and Development (CEED) raised concerns in October 2025 over the government’s clarified exemptions to the coal moratorium.
The organization warned that expanding eligibility for exemptions could undermine the country’s transition toward renewable energy.
Environmental advocates argue that approving new coal projects may create long-term dependence on fossil-fuel infrastructure.
Coal-fired plants generally require substantial upfront investment and are designed for many years of operation.
As a result, financial and contractual commitments could continue even as cleaner technologies become more competitive.
Supporters of the DOE’s approach emphasize the immediate importance of dependable electricity, particularly in areas facing supply deficits.
The competing positions reflect a genuine policy challenge.
The government must determine how to maintain electricity security while reducing emissions and avoiding expensive investments that may become less competitive over time.
Renewable Energy Remains Central to the Visayas Plan
The DOE says it has not abandoned its renewable energy strategy.
Its September 2026 Visayas power response identified renewable energy additions alongside new dependable generating capacity.
For the Cebu-Bohol area, the department projected approximately 470 MW of additional renewable capacity in 2028 and another 60 MW in 2029.
The broader Visayas development strategy also involves projects in Panay, Negros and other islands.
Solar and wind can diversify the electricity supply and reduce fuel dependence.
But their output varies according to sunlight, wind conditions and other factors.
To make greater use of renewable generation, the region also needs energy storage, flexible backup capacity and adequate transmission infrastructure.
The long-term question is therefore not simply whether coal, gas or renewable energy should be developed.
It is what combination of generation, storage and transmission can provide reliable power at an affordable cost while meeting environmental goals.
Cebu Energy Alliance Adds Pressure for Concrete Solutions
The new power proposals were discussed shortly after government officials and business leaders formed the Cebu Energy Alliance on October 12.
Led by Cebu Governor Pamela Baricuatro and joined by the DOE, power companies, regulators and business representatives, the alliance aims to improve cooperation on electricity reliability and pricing.
The Cebu Chamber of Commerce and Industry has highlighted the importance of dependable electricity for investment, employment and business competitiveness.
The alliance provides a platform for identifying problems and coordinating responses.
However, its formation should not be confused with the formal approval or financing of specific power plant projects.
The commitment agreement did not itself establish that the proposed coal or gas facilities were ready for construction.
Consumers will ultimately judge the alliance by whether electricity interruptions decrease and costs become more predictable.
A Master Plan to Make Visayas Islands More Self-Reliant
Beyond individual power stations, the DOE is preparing a longer-term electricity development strategy for the Visayas.
The proposed approach would assess the generating capacity and future demand of major islands, including Cebu, Bohol, Negros and Panay.
Instead of relying excessively on electricity transmitted from distant locations, each island would aim to develop enough local supply to better support its requirements.
Existing interconnections would remain important for sharing surplus electricity and providing assistance during emergencies.
This approach could reduce vulnerability when transmission constraints or generating outages occur.
But creating more locally available electricity also requires investment, planning and coordination between power companies, regulators, transmission operators and local governments.
The policy must consider future growth rather than simply reacting to shortages after they emerge.
Will More Coal Power Actually Lower Electricity Bills?
For ordinary consumers, additional generating capacity may help reduce the risk of power shortages.
But it does not automatically guarantee lower electricity prices.
A new power plant must recover construction, financing, fuel and operating costs.
If a project becomes expensive to build or relies on costly imported fuel, its electricity may not necessarily be cheaper than alternatives.
Long-term power supply contracts, market competition and regulatory approval also influence the charges eventually reflected in consumer bills.
Coal can provide continuous electricity when plants operate reliably, but fuel-price changes and unexpected equipment outages can affect both costs and availability.
Similarly, renewable energy projects may offer competitive generation costs but can require supporting storage or flexible power sources to serve demand at all hours.
For Cebu households and businesses, the important question is whether the total electricity system can deliver reliable service at a sustainable price.
The Bigger Test: Energy Security Without Locking Cebu Into Higher Costs
The Visayas needs more dependable electricity.
The region’s expanding population, commercial activity and infrastructure development require generation capacity that can keep pace with demand.
The DOE’s willingness to consider exemptions to the coal moratorium reflects the urgency of the supply challenge.
The 257 MW of proposed Cebu coal capacity could eventually contribute to the province’s electricity resources if the projects proceed.
But it cannot provide immediate relief before the facilities are completed.
Nor does the use of higher-efficiency coal technology eliminate the environmental consequences of burning fossil fuels.
As the government evaluates coal, gas, renewable energy, battery storage and temporary generation, project transparency will be essential.
Consumers need to know how much capacity is actually being delivered, when it will become available, what it will cost and what environmental obligations apply.
The DOE is keeping coal-moratorium exemptions available as Cebu confronts a growing electricity challenge. But the ultimate test is whether the government can secure affordable, dependable power without creating another generation of expensive and carbon-intensive energy commitments.
