In a statement, First Gen vice president Carlos Lorenzo Vega emphasized that the affordability of coal is not consistent over time.
The statement quoted Vega as telling reporters on the sidelines of the recent Economic Journalists Association of the Philippines-AboitizPower Renewable Energy Forum that: “Affordability has many dimensions to it. If we say that this fuel source is expensive today, or for that matter cheap today, that could not be true tomorrow.”
The forum, with the theme “Powering A Sustainable Future”, meant to tackle government and private sector initiatives towards achieving the Philippines’ 35 percent renewable energy (RE) target by 2030 and 50 percent by 2050.
Sharp price spikes
Vega referenced sharp coal price spikes, including those triggered by Indonesia's export ban and the Russia-Ukraine war, which saw prices soar to $380 per metric ton from $70.
The Philippines, heavily reliant on imported coal, was particularly affected, with over 80 percent of its coal needs being sourced from abroad in 2023, based on data from the Department of Energy.
The Philippines’ dependency on coal-fired power rose almost 62 percent in 2023, overtaking China, Indonesia and Poland, according to London-based energy think-tank Ember.
Coal dependence
Last year, the share of electricity generated from coal in the Philippines climbed to 61.9 percent from 59.1 percent in 2022, making it the most coal dependent country in Southeast Asia.
At the forum, which aimed to advance discussions on achieving the country’s renewable energy goals, Vega questioned the sustainability of coal dependence, particularly as the Philippines became the most coal-reliant country in Southeast Asia in 2023.
Pragmatic solution
Vega also highlighted natural gas as a pragmatic solution, offering a lower carbon footprint while ensuring reliable power.
With the government pushing for renewable energy and the Department of Energy’s Philippine Energy Plan 2020-2040, natural gas is being positioned as a key transition fuel to meet growing energy demands.
Lopez-led First Gen, the country’s leading clean energy provider, has positioned its portfolio of low-carbon power plants, including its natural gas-fired facilities, as balanced solutions to address the country’s energy woes.
