Coal is seen to remain to have a significant share in the country’s energy mix until 2020, an international report said.
In a report by the Inquirer, a paper from Energy and Natural Resource Market Reports said that coal’s share in the mix will remain high at around 32 percent of the total consumption.
This is despite the strong opposition from environmentalists and warnings on rising power rates due to the increase in excise tax on coal through the Tax Reform for Acceleration and Inclusion (TRAIN) law.
“Fossil fuels will remain the Philippines’ main source of energy, but the country will also continue to exploit alternative energy sources,” the report said.
The report said that the Philippines would replace imported coal for power generation with locally generated ones following the increased production in the Visayas and new mines in Mindanao.
It emphasized the production of the Semirara Mining and Power Corp. in the Visayas where the company is exerting efforts to increase coal output by one-third in volume to achieve 16 million metric tons in the next two to three years.
“The Philippines will gradually reduce its dependence on imported energy, as petroleum products from overseas decline in importance in its energy mix and as the country makes more use of locally available fuels,” the Poland-based research firm said.
Under TRAIN law, coal excise tax will increase to P50 per metric ton this year, P100 per ton in 2019, and P150 per ton in 2020.