‘Coal demand likely to keep steady pace’

MANILA, Philippines — Coal demand is expected to remain stable this year as the ongoing energy emergency keeps coal-fired power plants vital to meeting the country’s electricity needs.

In its Coal Mid-Year Update 2026, the International Energy Agency (IEA) said coal plants in the Philippines are already running at high load factors, helping sustain demand.

The IEA also sees rising electricity demand in the Philippines, alongside Indonesia and Vietnam, supporting further growth in coal use across Southeast Asia next year.

Across ASEAN, coal demand is set to continue growing this year, reaching around 574 million tons.

With global fuel markets remaining tight amid ongoing supply disruptions in the Middle East, the Philippines is pushing for the full dispatch of coal facilities.

Energy Secretary Sharon Garin has said coal “remains one of the cheapest options” for power generation.

The country has one of the most coal-dependent power grids in the region, with coal accounting for around 60 percent of its energy mix. Its coal consumption was forecast to reach 47 million tons last year, according to the IEA.

By 2030, the Philippines’ coal demand is seen rising by 15 percent to 54 million tons, keeping the country among the region’s largest consumers.

The Department of Energy imposed a coal moratorium in 2020 to reduce the country’s reliance on fossil fuels.

The ban, however, does not cover existing and operational coal power plants or those that are already committed projects.

Also excluded are the indicative projects with substantial accomplishments and approved clearances from local government units and the regional development councils where they are located.

Energy Undersecretary Rowena Cristina Guevara said a coal transition plan is set to be issued, including a work program for developing coal projects exempt from the existing moratorium.

The move could add three to five gigawatts of new baseload capacity.

Coal plants are regarded as reliable sources of baseload power because they can operate continuously and provide a steady supply of electricity.

In recent months, however, the simultaneous shutdowns of several large coal plants have contributed to the continued power supply strain in the Visayas and Mindanao.