Gov't eyes ‘temporary’ coal push amid global energy turmoil

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MANILA, Philippines — The government may temporarily increase reliance on coal-fired power plants to cushion the impact of rising electricity rates amid global fuel supply disruptions, the Department of Energy said Tuesday.

Energy Secretary Sharon Garin said the Philippines is exploring ways to boost output from coal plants as prices of liquefied natural gas (LNG) surge due to tensions in the Middle East.

“We talked to the generation companies, the coal-powered plants, to check how much they can increase their generation,” Garin said.

The proposed increase, which could be implemented as early as April 1, is seen as a short-term measure to help ease upward pressure on power rates.

“If we are successful in implementing this, at least we can decrease the electricity rate hikes because of the conflict in the Middle East,” she added.

Coal accounts for about 60% of the country’s power mix, underscoring the Philippines’ continued dependence on the fuel despite efforts to diversify energy sources.

Garin said the government would also maximize the use of local coal while keeping import options open, particularly from Indonesia, the country’s main supplier.

“There’s no restriction on our importation of coal from Indonesia as of today,” she said, noting that additional imports may not be necessary.

The Philippines remains vulnerable to global energy price fluctuations due to its reliance on imported fuel, contributing to high electricity costs and recurring supply concerns.

Earlier this year, President Ferdinand Marcos Jr. announced a “significant” natural gas discovery near the Malampaya field, which supplies around 40% of Luzon’s electricity requirements but is expected to be depleted within the next few years.

The discovery is expected to help extend the life of the facility and support the country’s long-term energy security.