The Department of Energy (DOE) said Thursday around 6,300 megawatts (MW) of “young” coal capacity will continue to reliably supply the country’s baseload power requirements until 2030 and beyond.
Energy Secretary Raphael Lotilla said during the Philippine Chamber of Commerce and Industry (PCCI) Power Summit 2024: Moving the Economy Forward with Energy and Power Security and Competitiveness that 6,300 MW of dependable coal capacity, or the output of coal plants aged 10 years or younger, could be relied on to operate for at least another 30 years.
Lotilla said more than 3,400 MW of dependable coal capacities are between 10 and 30 years old, allowing for at least another 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 to 2030,” Lotilla said.
“Maximizing the use of existing energy infrastructure avoids placing an added cost burden on both the economy and consumers,” he said.
Lotilla said 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 in response to the call of PCCI to lift the coal moratorium to address the country’s growing power demand.
Lotilla said, however, the economy was over-dependent on imported coal as 83 percent of coal supply for power plants was imported in 2023.
“Diversification of electricity sources, particularly indigenous ones, is key to increasing energy security in the country. Indigenous renewable energy has a major role to play,” he said.
“Our potential for harnessing solar and wind is high; their current contributions amount to only three percent and have therefore much more room for expansion. Solar, in particular, requires less construction time. Since both are intermittent sources, energy storage systems are crucial,” he said.
Lotilla said DOE also accelerated exploration for natural gas which could serve as a transition fuel. “While we explore for new domestic gas resources, we have in place reception and regasification facilities for imported LNG. We are also preparing the country for nuclear power as a source of electricity,” he said.
