First Gen Corporation stressed the need to rethink the country’s reliance on coal, noting that it is not as cheap or reliable as some may believe.
In a report by Business Mirror, First Gen vice president Carlos Lorenzo Vega said that while coal may seem affordable in the short term, its costs can fluctuate drastically due to global events.
Vega pointed out that coal prices soared from USD 70 to USD 250 per metric ton when Indonesia imposed an export ban and further increased to USD 380 per metric ton following the Russia-Ukraine war. This price volatility undermines the belief that coal is always a cheap energy source.
The Philippines, which imports more than 80% of its coal requirements, has become the most coal-dependent country in Southeast Asia, with 61.9% of its electricity generated from coal in 2023.
Vega added that coal causes environmental harm, noting that it is the dirtiest fossil fuel and a major contributor to global temperature rise.
To this, the First Gen vice president stressed that the country must focus on transitioning to greener energy sources, arguing that coal is not a sustainable solution to the Philippines’ growing power demands.
The Department of Energy’s 2020-2040 Philippine Energy Plan identifies natural gas as a key transition fuel to complement the country’s growing renewable energy capacity.
Meanwhile, First Gen chairman and CEO Federico Lopez highlighted the importance of reducing the carbon intensity of electricity and expanding energy efficiency efforts.
Lopez projected that by 2050, the Philippines will require five times its current electricity consumption, with 10 to 12 times more clean energy than is used today.
