Government to acquire and reuse coal-fired power plants in Mindanao
The Philippine government plans to acquire coal-fired power plants in Mindanao and reuse them, as the country seeks to shift more to renewables in the future.
Deputy Finance Secretary Paola Alvarez said the government plans to shift most of Mindanao’s energy needs to hydropower in a bid to encourage more investment in the region.
“We will acquire all the coal-fired power plants in the region for reuse as we increase the capacity for renewables,” she said during an online media roundtable.
Alvarez said the finance ministry is currently in talks with the Asian Development Bank (AfDB) for the Coal Replacement Fund pilot project.
It is also in cooperation with the Department of Energy (DOE) for the feasibility studies on the economic model of the proposed acquisition of coal-fired power plants in the region.
“We will begin our transition by exploring how sustainable finance can be used to improve the greening capacity of the Agus-Pulangi hydropower plant in Mindanao,” she said.
The World Bank approved in April a financing agreement of $ 700,000 to finance the rehabilitation of the Agus-Pulangi hydropower plant.
Once preparations are complete, the WB would lend the Philippines an initial amount of $ 100 million to partially finance the cost of $ 150 million of the first project in the series of rehabilitation projects.
“Threats from climate change, environmental landscapes and consumption patterns compound the country’s long-standing development challenges,” Alvarez said.
“Investments must be mobilized to tackle climate change and disaster risks,” she added. – RSJ, GMA News