‘Higher coal use raises risks, costs for Philippines, Asean peers’

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

April 13, 2026 | 12:00am

MANILA, Philippines — The global oil crisis has forced the Philippines to lose momentum in its energy transition push, as it leans more heavily on coal power generation to cushion the impact of price shocks.

This renewed reliance on coal risks is driving up power costs, weakening energy security and undermining climate goals for the Philippines and the rest of Southeast Asia, according to Zero Carbon Analytics.

ZCA said surging global oil and gas prices driven by tensions in the Middle East have triggered a short-term regional shift toward what has long been dubbed “dirty energy.”

“However, this shift is already pushing up coal prices, exposing ASEAN countries to the same volatility they sought to avoid,” the international research group said in its latest report.

In the Philippines, which has been pursuing a bold energy transition, the government is pushing for the full dispatch of coal-fired power plants to prevent electricity prices from rising too much.

Energy Secretary Sharon Garin earlier estimated that ramping up coal-fired generation could temper the price hike by about P2 per kilowatt-hour.

“Coal is often seen as a fallback during energy crises, but data shows it is neither cheap nor stable,” said Amy Kong, author of the latest ZCA report.

Dubai crude, a pricing benchmark for crude oil in the Asia-Pacific market, closed at $100.75 a barrel on April 10, easing slightly but remaining elevated amid the fragile ceasefire in the Middle East.

Amid higher oil and gas prices, ZCA said fuel switching could push coal prices higher. Based on Newcastle coal futures, coal prices reached as high as $146.25 per metric ton on March 30.

“Fuel switching may offer short-term relief, but it ultimately locks countries into higher costs and greater exposure to global price shocks,” Kong said.

The Philippines is among the Southeast Asian countries with the highest electricity rates. It also has one of the region’s most coal-dependent power grids, with coal accounting for over 60 percent of its energy mix.

On the supply side, the Philippines relies heavily on Indonesia, which supplies roughly 98 percent of its coal imports.

This has sharpened attention on renewable energy, particularly solar power, as a cheaper and more secure option to shield the Philippines and its ASEAN neighbors from global shockwaves.

“Once you account for the full costs of coal, the economic case for renewables becomes overwhelming,” Kong added. “Energy security in Southeast Asia will not come from switching between fossil fuels; it will come from reducing dependence on them altogether.”

Under the Philippine Energy Plan, the government aims to scale up the share of renewables in the power mix to 35 percent by 2030 from the current 25 percent.