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DMCI Power Corp. is seeking environmental approval to build an additional 15-megawatt (MW) coal-biomass-fired power plant in Narra, Palawan, in a ₱3-billion project that would double its existing generating capacity to 30 MW to meet rising electricity demand on the island.
The company is applying to the Department of Environment and Natural Resources (DENR) for an Environmental Compliance Certificate (ECC) covering the proposed Phase 2 expansion beside its existing 15-MW circulating fluidized bed coal-biomass-fired power plant in Barangay Bato-Bato.
In its submission to the DENR, DMCI Power said the project is part of its contractual obligations to the Palawan Electric Cooperative (PALECO), which requires additional dependable capacity to accommodate growing electricity demand on the Palawan Main Grid.
“The Phase 2 Expansion is therefore recognized by the national government as a critical project that will augment dependable capacity for the Palawan Main Grid, support long-term energy security, and contribute to regional economic development,” the company said.
The existing facility began commercial operations in August 2023. Once the proposed expansion is completed, the combined capacity of the two units would reach 30 MW, providing additional supply to the grid.
Cleared From Coal Moratorium
The Department of Energy (DOE) issued a Certificate of Energy Project of National Significance for the Phase 2 expansion, indicating its alignment with the policy objectives of the Philippine Energy Plan.
The DOE also granted the project an exemption from the government’s moratorium on new coal-fired power plants on May 31, 2024.
These approvals recognize the project’s national energy significance and remove the coal moratorium as an obstacle to its development. The proposed facility, however, remains subject to the applicable environmental approval process, including the company’s ECC application with the DENR.
DMCI Power plans to use the same circulating fluidized bed technology employed by the existing plant. The company said the technology offers an efficient option for supplying electricity in off-grid areas and supports the government’s efforts to reduce dependence on imported fuel oil.
Coal is locally available and generally has a lower, more stable price than imported fuel oil, according to the company. This could help limit exposure to fluctuations in international oil prices, which affect the cost of operating power facilities that rely on imported petroleum products.
The project would also expand DMCI Power’s conventional generation capacity in Palawan, where the company has a power supply agreement with PALECO.
Pollution Controls
The proposed Phase 2 unit will have its own pollution-control and ash-management systems, designed to mirror those installed at the existing facility.
The current plant is equipped with an electrostatic precipitator to capture particulate emissions, systems for handling and storing fly ash and bottom ash, a limestone feeding system, a continuous emission monitoring system, and a smokestack.
DMCI Power said the additional unit would have similar equipment to maintain emission-control and ash-management performance across the expanded 30-MW facility.
The company has indicated an economic operating life of about 30 years for the proposed plant. At the end of that period, the facility would undergo a technical, economic, operational, and environmental assessment to determine whether it should continue operating, undergo rehabilitation or refurbishment, receive a capacity upgrade, be repowered, or be decommissioned.
Any extension of commercial operations would depend on the assessment results and compliance with applicable regulatory requirements and permits, the company said.
Investment Program
The Palawan project comes as DMCI Power increases spending on generation facilities serving off-grid and missionary areas, where electricity supply depends on dedicated power plants and supply arrangements with electric cooperatives.
In February, the company announced a capital expenditure budget of ₱2.4 billion for 2026, up from ₱1.4 billion in 2025. The planned spending is intended primarily for new hybrid, renewable, and conventional power facilities to support growing demand in its service areas.
DMCI Power President Antonino Gatdula Jr. previously identified a proposed 17-MW bunker-fired power plant in Occidental Mindoro and an 8-MW bunker-fired facility in Roxas among the company’s projects lined up for the year.
The company also serves missionary areas in Masbate, Palawan, Oriental Mindoro and Antique through power supply agreements with the respective electric cooperatives.
DMCI Power reported a 6% increase in energy sales in 2025, which it attributed primarily to the commissioning of its 12.5-MW Semirara wind power facility in the second quarter of that year.
The company’s reported energy sales reached 522.2 gigawatt-hours (GWh), although the figures supplied in its report list 49.2 GWh for 2024, a baseline that appears inconsistent with the stated year-on-year increase and requires verification.
The proposed Palawan expansion affirms the continuing role of conventional generation in DMCI Power’s efforts to meet demand in off-grid markets, even as the company pursues renewable energy and hybrid projects. Its eventual implementation will depend on securing the necessary environmental approval and meeting the requirements governing the plant’s construction and operation.
Source:
https://businessmirror.com.ph/2026/10/15/dmci-power-seeks-nod-for-plant-expansion
https://bilyonaryo.com/more-power-for-palawan-consunjis-dmci-eyes-p3b-coal-plant-expansion/