Energy
Wednesday, July 3rd, 2024 2:25 pm EDT
Key Points
- Rapid Surge in Coal Dependency: The Philippines experienced a sharp 62% increase in its dependency on coal-fired power in 2023, surpassing China, Indonesia, and Poland in coal reliance, according to Ember. Coal’s share in electricity generation rose to 61.9% from 59.1% in 2022, driven by a 9.7% increase in coal generation, which outpaced the 4.6% rise in electricity demand.
- Leading Coal Dependency in Southeast Asia: In 2023, the Philippines emerged as the most coal-dependent country in Southeast Asia. Despite global trends towards renewable energy adoption, the country’s reliance on coal remains high, reflecting its historical role in ensuring energy security amid growing electricity demands since the 1990s.
- Regional Trends and Challenges: Indonesia closely follows the Philippines as one of the most coal-dependent nations in Southeast Asia, with coal’s share in power generation hitting 61.8% in 2023. The region as a whole saw a modest uptick in coal reliance, from 31% in 2022 to 33% in 2023, highlighting the challenges in transitioning to renewable energy sources like wind and solar. The Philippines, in particular, has seen slower growth in renewable electricity generation compared to its regional counterparts, necessitating concerted efforts to scale up renewables while curbing coal-fired power generation.
In 2023, the Philippines saw a significant surge in its reliance on coal-fired power, marking a 62% increase compared to the previous year, according to a report by London-based energy think-tank Ember. This rise catapulted the Philippines ahead of China, Indonesia, and Poland as the most coal-dependent nation. Coal’s share in electricity generation spiked to 61.9% from 59.1% in 2022, with overall coal generation increasing by 9.7%, outpacing the 4.6% growth in electricity demand.
Dinita Setyawati, senior electricity policy analyst for Southeast Asia at Ember Climate, highlighted the historical role of coal in meeting the Philippines’ energy needs since the 1990s, when numerous coal power plants were constructed to cope with escalating electricity demand. This trajectory underscores ongoing dependence despite global trends towards renewable energy adoption.
Ember’s report also underscored Indonesia’s parallel trajectory, noting it as the world’s fifth-largest coal producer with coal-generated power reaching 61.8% in 2023, mirroring the Philippines’ trend. The report emphasized Southeast Asia’s overall coal reliance, which increased from 31% in 2022 to 33% in 2023, driven primarily by Indonesia and the Philippines.
Comparatively, China has made strides in reducing coal’s role in electricity generation, with its coal reliance dropping to 60.7% in 2023, albeit still higher than India and Poland. China’s focus on renewable energy development has contributed to a slowdown in emission increases, with clean electricity now comprising 35% of its total generation.
Despite these global shifts, Ember highlighted Indonesia and the Philippines lagging in renewable energy adoption, citing minimal growth in wind and solar generation. The Philippines, for instance, saw its wind and solar generation climb modestly from below 1 terawatt-hour in 2015 to 3.7 TWh in 2023, contrasting sharply with regional leaders like Vietnam.
Ember advocated for a dual approach: scaling up renewable energy sources while curbing the pace of coal-fired power generation in Indonesia and the Philippines. Setyawati urged Indonesia to enhance its renewable energy ambitions through policy incentives, such as supporting rooftop solar, relaxing local content requirements for renewables, and boosting public funding for solar and wind technologies.
In conclusion, while the global energy landscape shifts towards renewables, Indonesia and the Philippines face challenges in reducing coal dependence and accelerating renewable energy integration, necessitating strategic policy interventions to align with global sustainability goals.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/03/philippines-surpasses-china-to-be-most-dependent-on-coal-generated-power.html
