The Philippines has seen a dramatic 62% surge in coal-fired power dependency in the past year, surpassing countries like China, Indonesia, and Poland, according to a recent report from Ember, a London-based energy think-tank.
In 2023, the Philippines stood as the most coal-dependent nation in Southeast Asia, with coal contributing 61.9% of the country’s electricity generation, up from 59.1% the previous year. This increase in coal usage resulted in a 9.7% rise in coal generation, outpacing the 4.6% growth in overall electricity demand.
“Coal has been vital for ensuring energy security in the Philippines. Since the 1990s, the country has witnessed a significant influx of coal power plants to meet the rising electricity needs,” noted a senior electricity policy analyst from Ember Climate.
Indonesia and the Philippines are the two most coal-dependent countries in Southeast Asia, and their reliance on coal is growing rapidly.
Indonesia, the fifth largest coal producer globally, closely follows the Philippines, with coal accounting for 61.8% of its power generation in 2023. The report highlights a regional trend of increased coal reliance, with Southeast Asia’s dependency on coal rising from 31% in 2022 to 33% in the past year.
In comparison, China has begun reducing its dependence on coal, which accounted for 60.7% of its electricity generation in 2023. This shift is accompanied by significant progress in renewable energy, which has contributed to a gradual decrease in emissions growth rates.
Slow Progress in Renewable Energy Adoption
Both Indonesia and the Philippines face challenges in replacing coal as their primary energy source, with the need to bolster renewable energy capacity becoming increasingly urgent. The report indicates that both nations have experienced minimal growth in renewable electricity generation, particularly in wind and solar energy.
In the Philippines, wind and solar generation rose from below 1 terawatt-hour in 2015 to just 3.7 TWh last year, falling significantly behind other regions, primarily driven by Vietnam’s growth in renewable energy. The report emphasizes the necessity of scaling up clean energy initiatives while concurrently reining in coal-fired generation in both countries.
Experts urge that new policies to enhance renewable energy, including incentives for rooftop solar installations and easing local content requirements for solar and wind producers, are essential for Indonesia’s energy transition.
