DoE eyes resuming coal auction by mid-2026

By Sheldeen Joy Talavera, Reporter

THE DEPARTMENT of Energy (DoE) is planning to resume the coal auction, which includes Semirara island operated by the country’s largest coal producer, by the middle of this year, the Energy chief said.

“We have postponed the Semirara bidding, but it may resume around the middle of this year as we still have several things to fix,” Energy Secretary Sharon S. Garin told reporters late on Monday.

Last month, the DoE announced it will push back the deadline for the submission and opening of bid documents for the coal auction originally scheduled for April 28.

The auction was postponed until further notice to ensure that all issues raised during the pre-submission conferences are “fully considered and addressed” before announcing the revised deadline, it said.

Launched in February, the bid round is offering three coal areas, which is estimated to hold around 207 million metric tons of coal reserves.

The auction covers the Semirara blocks in Antique, which carries about 160 million metric tons of reserves. The site is currently operated by Consunji-led Semirara Mining and Power Corp. (SMPC), which failed to renew its 50-year coal operating contract.

SMPC is the country’s largest coal producer, accounting for 97% of domestic output, gaining its strong foothold in the sector through its flagship asset.

“This is the first time for us to bid out an already existing coal mine. And it’s also the biggest in the country,” Ms. Garin said. “So, we’re trying to make the best offer that we can get, and the best offer that’s for the country.”

With the auction yet to take place, there are concerns floated by potential bidders such as the duration of the contract resulting from the bidding, expected production volume, and the handling of existing equipment or facilities.

“We are also studying to compel them to ensure that a certain minimum percentage should be sold to the Philippines, not exported,” Ms. Garin said.

Asked to comment, Michael T. Toledo, chairman of the Chamber of Mines of the Philippines, said the government’s planned resumption of coal auction is “a pragmatic step for near-term energy security.”

“While the global shift is toward critical minerals and renewables, coal remains a critical baseload anchor for the grid right now,” he told BusinessWorld.

Mr. Toledo said established domestic players and specific regional investors will likely show strong interest because these are proven, high-yield assets.

“Done transparently, this auction signals to investors that the government is taking a realistic, dual-track approach to securing power while transitioning,” he said.

While coal dominates the Philippines’ power generation mix, the country imports more than 90% of its requirements.

The country, however, is trying to move away from fossil fuels by aiming to increase the utilization of renewable energy to reduce exposure to volatile global prices and reduce carbon emissions.