Coal still reigns over PH energy mix
- Nicole Dela Cruz | Alvin Ilustrisimo
- Jan 17, 2018
- 2 min read
Coal-fired power plants continue to dominate Philippine energy market besides the fact of the Tax Reform for Acceleration and Inclusion (TRAIN) Law raising the tax on coal.
Over the last few decades, the popularity of coal in both developed and developing countries has been on the rise.
According to the Department of Energy (DoE), coal remains the top energy source of the country for the past few years and will continue to be a major contributor to new capacities for the upcoming years.
TRAIN Law raises the excise tax on coal from P10 per metric ton previously to P50 per metric ton this year.
The coal tax would rise further to P100 per metric ton in 2019 and to P150 per metric ton in 2020.
In line with this, consumer welfare advocates warned about an increase in power cost. On last year’s report, Ma. Theresa Capellan, president of the Philippine Solar Power Alliance, said that the economics of generation will dictate the energy mix.
“In fact, the government needs to be concerned about and prepare for is the massive stranded cost that utility companies will bear as they contend with long-term coal contracts,” she added, warning further: “Worse, the impact of the long-term contracts and stranded contracts will be carried by taxpayers or rate payers. That is the issue.”
According to a report, the country will gradually reduce the dependence from imported energy, as petroleum products from overseas decline in importance in its energy mix and as the country makes use more of available fuels locally.
Regardless of the country’s having fossil fuels as its main energy source, it will still continue to overuse alternative energy sources. According to the United Kingdom based consultancy, Wood MacKenzie, a total of $250 billion worth of investment were expected to attract coal-fired power over the upcoming decades.