New research shows that coal will remain the primary energy source used to develop the Philippines for the next ten years.
A report by Fitch Group’s BMI Research found that “growth in the Philippines power infrastructure sector over the next 10 years will be driven by investment in coal-fired generating capacity, as companies and the government build a slew of new power plants to support growing electricity demand.”
Based on current projects in the pipeline, the research found that the Philippines power sector will grow by 10% a year up till 2026, with the vast majority of that growth supplied by coal.
Like several other Southeast Asian countries, the Philippines has adopted a pragmatic approach to energy policy, with Energy Minster Alfonso Cusi stating that “while all countries have an obligation to combat climate change, we also have a particular responsibility to our people.”
Mr Cusi believes that developing countries should not be “constrained by rigid or arbitrary targets in sourcing our energy”, and has stressed that renewables “remain unaffordable in comparison to conventional energy sources.”
“This may not be an issue for consumers in wealthy countries, but poses a struggle for those in developing nations,” Mr Cusi said.