Coal-fired power plants will continue to provide the base load upon which electrical grids in the Philippines will provide in the next forty years unless a new power source is found, the Department of Energy (DOE) said.
This was raised by Energy Secretary Raphael Lotilla and the reason he cited for the need to maximize the use of existing energy infrastructure, particularly on newer coal-fired power plants to avoid adding undue “cost burden” on both the economy and consumers.
Lotilla said the infrastructure runs on 6,320 megawatts of dependable coal capacity aged 10 years or younger or enough baseload capacity until 2030.
“We do not set aside our responsibility in ensuring adequate baseload capacity in conjunction with our push to increase the 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 at least another 30 years,” Lotilla said at the Power Summit recently hosted by the Philippine Chamber of Commerce and Industry in Makati City.
“Moreover, over 3,400 MW of dependable coal capacity 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.
These remarks have to do with the global preference for a cleaner and sustainable baseload power source for power grids across countries and explains in part the global preference for renewable energy sources as wind- and solar-driven power facilities.
In the Philippines this ongoing shift is rather problematic as baseload power is overwhelmingly provided by pollutive coal-fired power plants even as power demand continues to rise and even as newer baseload plants are increasingly harder to build for lack of support financing.
Lotilla acknowledged this development but urged caution against judging harshly the moratorium on new coal-fired plants.
He said the lack of investments for baseload power plants is driven strictly 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 on-grid capacity contribution, coal continues to dominate the power mix with total installed capacity of 12,406 MW equal to 43.9 percent of the total 28,291 MW installed capacity as at end-2023.
