DOE sees increased dependence on coal, seeks better fuel-mix policy

MANILA, Philippines - The Philippines may have to use coal to fuel as much as 75 percent coal of its power needs by 2030, if no immediate steps are taken by both the government and the private sector, a ranking energy official said.

Once that happens, the country’s electricity rates would be much cheaper than what it cost today. However, using that much coal may not sit well for the environment, Energy Undersecretary Loreta G. Ayson told The STAR in a chance interview.

“Coal is the predominant fuel source and if we don’t do anything about it we might end with 75 percent of our fuel mix using coal by 2030,” Ayson said.

Ayson said the Department of Energy, in consultation with stakeholders, is eyeing to come out within the year with a new fuel mix policy for the country.

The fuel mix policy is seen to diversify the country’s energy sources with its impact on electricity prices and the environment being taken into account.

“So we’re trying to make adjustments so that there’s a balance of coal, renewable energy, natural gas and other technologies. We’re also looking at a balance of cost and implications to environment. Coal is really the cheapest, but is also detrimental to the environment so we’re doing a balance with all of these factored in,” Ayson said.

To date, the energy official said 34 to 36 percent of the country’s power generation requirement is fueled by coal.

The remaining is sourced from oil, natural gas, wind, geothermal, hydropower, biomass, and solar.

There are about 45 coal projects in the country at present. The private sector believes coal would continue to be a much-needed energy source in the country in the coming years.

“We want to be supportive of the whole renewable technology so that there would be a mix, but we truly believe that coal still has a large role because that is the most cost competitive so it is still needed,” Ayala Corp managing director Eric Francia said.

The DOE, under its Philippine Energy Plan, is eyeing to triple the country’s 2011 renewable energy capacity of 5,400 megawatts (MW) to about 15,400 MW by 2030.

“So what we’re looking at is a combination of different fuel sources such as coal, natural gas, renewables, other new technologies, and maybe on a long-term basis nuclear power,” Ayson said.

Ayson said nuclear may be out of the picture over the near term for now given the various prevailing safety issues that the energy source is facing.

“We are considering nuclear in a long term basis, maybe 2030 or 2050,” she said.