Coal-fired power plants may soon become a thing of the past.
With fresh funding to the tune of 500 million US dollars from the Climate Investment Funds (CIF), The Department of Energy (DOE) is seriously considering retiring or repurposing the coal-fired power plant in Mindanao.
The CIF is a multilateral global initiative that helps over 70 low and middle-income countries adapt to more sustainable means of development. Aside from funding the planned retirement or conversion of the Mindanao coal-fired power plant, the $500 million fund will be used to add a target of 1,500 MW of renewable energy capacity by 2030.
Pivoting To Green Infrastructure
New renewable energy infrastructure would include battery systems, offshore wind, floating solar and pumped hydro projects. With the new CIF funding falling under the Accelerating Coal Transition Investment Program, coal plants such as the one in Misamis Oriental, Mindanao could be repurposed into renewable energy plants.
The country is hoping to accelerate the retirement of up to 900 MW of existing coal generation capacity by 2027.
“Along with various commitments to advance global climate goals, the country’s vulnerability to climate-induced disasters underscores the need for immediate action to achieve a just energy transition,” Energy Secretary Raphael Lotilla said.
Sustainable Development
He added that the CIF funding will help “pave the way towards creating an enabling environment for a just energy transition that supports sustainable development objectives.” Lotilla is optimistic that the funds will support energy transition initiatives and replace the power output of coal plants by developing new renewable energy facilities.
“The challenges of accelerated coal retirement in a private sector-led power industry remain. However, we trust that the ACT Investment Program will serve as a robust blueprint for the process of transitioning away from coal and subsequently fuel the development of the country with clean energy,” Lotilla said.
“The realization of this aspiration is only possible through sustained and meaningful engagements with our stakeholders and outcomes-based support from our global partners,” he added.
