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DOE Maintains Its Position: Coal Moratorium Policy Stays in the Country
Date published: May 9 2026 12:00 AM
MEDIA RELEASE
8 May 2026
DOE Maintains Its Position: Coal Moratorium Policy Stays in the Country
The Department of Energy (DOE) reaffirms that the country’s coal moratorium policy remains in effect and will not be lifted, despite calls to allow the development of new coal-fired power plants.
The DOE clarified that the coal moratorium imposed in December 2020 continues to be fully enforced. Under the policy, no new coal power projects may secure DOE endorsements after October 2020. However, projects that were already granted Certificates of Non-Coverage are permitted to proceed.
In line with the December 2020 Advisory, coal power projects categorized as committed for expansion, or indicative projects with substantial accomplishments may apply for non-coverage from the DOE. In October 2025, the DOE issued a clarificatory advisory to further define the scope of the moratorium, particularly with respect to projects serving off-grid or island areas, facilities dedicated to the mining and processing of critical minerals, own-use projects within economic zones, and on-grid projects deemed necessary to avert an imminent power supply crisis.
At present, the DOE sees no compelling need to suspend or lift the coal moratorium. Moreover, coal-fired power plants already under development and expected to come online are projected to provide sufficient capacity to support grid reliability in the near term. In this context, accelerating the development of renewable energy remains a central pillar of the country’s longterm energy strategy.
At the same time, the DOE is conducting a review of indicative coal projects, prior to the coal moratorium, to identify developments that may no longer be feasible. It is also assessing the operational performance of existing coal-fired power plants, particularly those that are aging, inefficient, or prone to unplanned outages, to protect consumers interests. Facilities found to be unreliable may be considered for voluntary retirement, re-purposing, or transition to cleaner energy sources.
While coal continues to play a role in the current energy mix, its use is being carefully managed. In parallel, the government is intensifying efforts to expand renewable energy capacity, recognizing its long-term benefits in terms of affordability, reliability, energy security, and environmental sustainability.
Overall, the government emphasized that the combination of existing approved power projects and an accelerated push for renewable energy development is sufficient to meet projected demand without lifting the coal moratorium. The DOE remains firm in its policy direction and will continue to pursue initiatives that ensure the reliability, affordability, and security of the country’s electricity supply through a balanced energy mix. ###