The Department of Energy (DOE) stressed the need to maximize the use of existing energy infrastructure, particularly the newer coal-fired power plants, to avoid added “cost burden” to consumers and the economy.
DOE Secretary Raphael Lotilla said the country currently has 6,320 megawatts (MW) of dependable coal capacity aged 10 years or younger, which will assure enough baseload capacity until 2030.
“Nevertheless, we do not set aside our responsibility to ensure adequate baseload capacities in conjunction with our push to increase RE (renewable energy) share in the power mix. We have over 6,300 MW of dependable coal capacity aged 10 years or younger.
These plants can be relied on to operate for at least another 30 years,” Lotilla said at a Power Summit hosted by the Philippine Chamber of Commerce and Industry in Makati City yesterday.
“Over 3,400 MW of dependable coal capacities are between 10 and 30 years old, allowing for at least a further 10 years of operation. We are prepared for the various scenarios of the energy transition and the relatively young age of these coal plants help ensure that we will have enough baseload capacity through 2030,” Lotilla added.
Lotilla said the coal moratorium must not be blamed for the lack of current investments in baseload power plants as the environment is still driven by market forces.
“While there is an existing moratorium on building coal-fired power plants, there are also exemptions for committed, indicative and expansion plans. It is not the moratorium but the market that has discouraged construction of coal plants. The scarcity of financing, higher insurance costs and the risks of carbon taxes and carbon pricing have deterred new coal projects,” Lotilla said.
Based on total on-grid capacity contribution, coal continues to lead the country’s power mix with an installed capacity at 12,406 MW equivalent to 43.9 percent of the 28,291 MW total installed on-grid capacity of the Philippines as of end-2023.
