Philippines' Renewable Energy Struggle: Coal's Dominance Threatens Green Transition
The Philippines is grappling with a renewable energy conundrum. Despite the potential of green energy, coal plants proliferate, making grid integration challenging. Meanwhile, job creation through renewable energy initiatives like net metering has been significant, with around 2,500 kW installed and 100,000 jobs created.
Coal's dominance can be attributed to its secure revenue streams and familiar financing. However, this trend is concerning as the share of renewable energy in the power mix has declined since the 2008 Renewable Energy Law. If planned coal projects materialize, Luzon's coal generation share could reach over 75% by 2030. Currently, 17 coal plants are operational, with more on the way, and another 29 plants are in the pipeline.
High electricity rates in the Philippines are a primary reason for favoring coal. However, efforts to counter coal's advantages include shifting to distributed generation, re-examining pass-through costs, implementing Renewable Energy Law mechanisms, and enforcing environmental standards. Notably, over 1,000 MW of renewable energy projects have been completed under the Feed-in Tariff System (FIT) of the RE Law.
The Philippines faces a critical juncture in its energy transition. While coal's advantages pose challenges, the country must push for renewable energy integration to create jobs, reduce environmental impact, and ensure a sustainable energy future.
