Philippines Takes Concrete Step Towards Phasing Out Coal with Coal Mines and Plants Closure Study

Strategic Insights -

The government of the Philippines has taken a significant step towards reducing its reliance on coal by exploring the possibility of closing all coal mines and power plants across the country. This move comes as the country ranks first in the 2023 World Risk Index list of countries susceptible to extreme weather events. The Department of Energy (DOE) has partnered with the United Nations Office for Project Services to study the impact of a total coal phaseout, including the potential implications for workers and local communities. The study aims to identify alternatives to cushion the economic impact on the energy sector and the local economy.

Key Takeaways:

  • The Philippine government has announced a study to explore the possibility of closing all coal mines and power plants in the country, which would be a significant step towards reducing the country's reliance on coal.
  • The study, commissioned by the Department of Energy (DOE), aims to assess the impact of a total coal phaseout on workers and local communities, including potential displacement and economic damage.
  • The DOE has partnered with the United Nations Office for Project Services to conduct the study, which will cover potential alternatives to cushion the economic impact on the energy sector and the local economy.
  • The study will need to determine the funding required to address the possible displacement of workers and economic damage to the community.
  • The Philippine government has set a target of raising the share of renewables in the power mix to 35 percent by 2030 and 50 percent by 2040, from a little over 20 percent today.
  • The government has already started looking into alternative energy sources, including solar and nuclear, which have shown promise in other countries.
  • The conversion of closed coal mines into solar farms is a particularly interesting trend, with China and Greece already undertaking such projects.
  • The Philippines can coordinate with these countries to learn from their policies and requirements in the conversion programs.

Statistics:

  • Coal accounts for 30.4% of the country's energy mix, the second biggest after oil at 31.6%.
  • Renewable energy such as wind, solar, and other sources contributed 32.4% to the country's energy mix in 2020.
  • Natural gas accounted for 4.2% of the country's energy mix, while geothermal energy contributed 9.3%.
  • Hydroelectric power contributed 9% of the country's energy mix.
  • Biofuels accounted for 1.2% of the country's energy mix.

Sources:

  • Philippines Department of Energy
  • United Nations Office for Project Services
  • Global Energy Monitor
  • International Energy Agency (IEA)
  • International industry reports
  • President Ferdinand Marcos Jr.'s administration