‘Coal demand likely to keep steady pace’
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.
Coal demand in the Philippines is anticipated to maintain a steady trajectory this year, according to the International Energy Agency's (IEA) Coal Mid-Year Update 2026. The agency highlights that coal-fired power plants are currently operating at high load factors, which is crucial in addressing the ongoing energy emergency in the country.
The IEA also predicts an increase in electricity demand across Southeast Asia, including the Philippines, Indonesia, and Vietnam, which will likely fuel further growth in coal consumption in the region.
ASEAN's coal demand is projected to continue its upward trend this year, reaching approximately 574 million tons. In the Philippines, coal accounts for around 60 percent of the energy mix, making it one of the most coal-dependent power grids in the region. The country's coal consumption was anticipated to reach 47 million tons last year, and the IEA forecasts a 15 percent increase to 54 million tons by 2030. This would keep the Philippines among the largest coal-consuming countries in the region.
In 2020, the Department of Energy implemented a coal moratorium to lessen the country's dependence on fossil fuels; however, the ban does not apply to existing and operational coal power plants or those in committed projects. Exemptions also extend to indicative projects with substantial achievements and clearances approved by local government units and regional development councils.
Energy Undersecretary Rowena Cristina Guevara stated that a coal transition plan is expected to be released, which will include a work program for developing coal projects exempt from the existing moratorium. This could potentially add three to five gigawatts of new baseload capacity. Coal plants are recognized as reliable sources of baseload power due to their ability to operate continuously and provide a consistent supply of electricity.
In recent months, the simultaneous shutdowns of several large coal plants have exacerbated the power supply strain in the Visayas and Mindanao regions.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
