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The Department of Energy (DOE) inaugrates its electric bus and charging station at the agency’s headquarters in Bonifacio Global City (BGC), Taguig on June 7, 2023.  Jonathan Cellona, ABS-CBN News/File

The Department of Energy (DOE) inaugrates its electric bus and charging station at the agency’s headquarters in Bonifacio Global City (BGC), Taguig on June 7, 2023.  Jonathan Cellona, ABS-CBN News

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DOE ELECTRIC VEHICLES

Nicole Agcaoili

Addie Cuadra

ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="The Department of Energy (DOE) inaugrates its electric bus and charging station at the agency’s headquarters in Bonifacio Global City (BGC), Taguig on June 7, 2023.  Jonathan Cellona, ABS-CBN News/File" src="https://od2-image-api.abs-cbn.com/prod/editorImage/171881328476820230607-doe-electric-bus-inauguration-JC2772.jpg" class="fr-fil fr-dib"/><figcaption>The Department of Energy (DOE) inaugrates its electric bus and charging station at the agency’s headquarters in Bonifacio Global City (BGC), Taguig on June 7, 2023. <em>Jonathan Cellona, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA – The Philippines plans to continue to rely on coal-fired power plants, especially on “young aged” power plants as they constitute a high number of megawatts which ensures enough baseload capacity until 2030. </p><p>Department of Energy (DOE) Secretary Raphael Lotilla, during a summit organized by the Philippine Chamber of Commerce and Industry on Wednesday, said “young” coal-fired power plants have a lot of future ahead of them, if ever there’s no closure happening. </p><p>&quot;Let’s take a look at the existing coal-fired power plants. If you take a look at the distribution, more than 3,000 megawatts are 1 to 5 year old coal-fired power plants. And then the 6 to 10 year olds are almost 3,000 megawatts,&quot; said <span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Lotilla.</span></p><div><a class="fr-green fr-strong" href="https://news.abs-cbn.com/business/2024/4/23/gov-t-urged-to-build-own-power-plant-for-emergencies-1950">Gov’t urged to build own power plant for emergencies</a></div><p>He said coal-fired power plants ages 11-15 constitute 1,300 megawatts; 21-25 with 1,750 megawatts; 26-30 with almost 1,500; while 26 and older with 600 megawatts or so. </p><p>Lotilla said transitioning to renewable sources comes with transition financing, and if ever the country is not yet ready to transition to renewable energy sources, the country will have to settle with coal-fired power plants and natural gas fired power plants. </p><p>“What if the transition financing is not available for us to build the necessary renewable energy sources?” he said. </p><p>“Well, we have these two to rely on, as well as the natural gas fired power plants. Right now we have, thanks to the efforts of the private sector, we have two liquefied natural gas (LNG) reception facilities,” he added. </p><div><a class="fr-green fr-strong" href="https://news.abs-cbn.com/lifestyle/2024/5/22/renewable-energy-transforms-communities-1429">Renewable energy transforms communities</a></div><p>These LNG facilities can support up to 8,000 megawatts, of which 4,500 is currently committed. </p><p>“In addition to the 3,200 existing natural gas power plants, you have an additional 1,300 which are committed for delivery  towards the end of the year. And we look forward to an additional up to 3500 megawatts, being expanded for up to 2028,” he said. </p><p>Lotilla revealed that the country has been dependent on imported coal. 83 percent of coal supply was imported in 2023. </p><p>“Almost 98% of that imported coal was sourced from a single country. While we have maintained excellent relations with Indonesia, our mains supplier. When Indonesia imposed an export ban due to its domestic supply constraints in 2022, what happened to us? We were left scrambling for supply all over,” he said, saying this vulnerability must be addressed. </p><p>He also mentioned how indigenous energy sources can possibly help in addressing scarcity in power supply, but noted that the country has a long way to go in terms of tapping indigenous resources. </p><div><a class="fr-green fr-strong" href="https://news.abs-cbn.com/business/2024/4/25/power-situation-now-a-calamity-says-doe-1554">Power situation now a &#x27;calamity&#x27; says DOE</a></div><p>“Our own indigenous coal, which has lower calorific content, cannot meet the requirements of our coal-fired power plants. Diversification of electricity sources, particularly indigenous ones, is key to increasing energy supply security in the country and indigenous renewable energy has a major role to play in that particular context. Our potential for harnessing solar and wind is high. Their current contributions amount only as I’ve said to 3 percent,” he said. </p><p>The El Niño phenomenon which has put different grids on yellow and red alerts is an example that certain events that affect our power supply are unpredicted. </p><p>“Our base load capacity is adequate except when it comes to El Nino phenomenon and the extreme events,” he said. </p><p>“What you have seen lately was a spike in the demand caused by the extreme heat. It increased by more than just 11 to 17 percent over the forecast demand. And the forecast demand was based on the last el nino and with some additional buffer,” he added. </p><div><strong>BALANCING ENERGY AFFORDABILITY AND REGULATORY MANDATES</strong> </div><p>Atty. Monalisa Dimalanta, Chairperson and CEO of the Energy Regulatory Commission, emphasized the challenges of balancing energy affordability and regulatory mandates in her presentation. </p><p>“Kanina nga kaya ang premise ko dun sa presentation “pushing the envelope on energy affordability” kasi medyo mahirap talaga yung trabaho natin sa kasi naghahanap tayo ng paraan para mapababa yung rates pero ang sabi ng batas ang generation rates pakawalan mo na. So parang ang hirap mag hanap ng solusyon dun na pano ko siya papababain,” Dimalanta emphasized. </p><p>Addressing the complexities of setting generation rates within legal frameworks, she highlighted the commission’s focus on ensuring that only rightful and due costs are passed on to consumers.</p><p>“Ang mga paraan talaga na ginagawa natin dun dapat only those that are, only the rightful cost and the due cost should be passed on,” she added. </p><div><a class="fr-green fr-strong" href="https://news.abs-cbn.com/business/2024/6/12/citicore-renewable-energy-optimistic-about-growth-in-the-philippines-1012">Citicore Renewable Energy optimistic about growth in the Philippines</a></div><p>Dimalanta acknowledged the diverse economic capacities of consumers, underscoring the Commission’s efforts to establish rates that are manageable for most while recognizing the difficulties faced by others. </p><p>“The difficulty with affordability now is we have–each of us have different affordability to pay. Tapos we’re coming out with a rate that is set at a level most or some will find it easy to pay yet some will find it hard to pay. But we need to lock in a number so very challenging talaga. Pero lahat nung programang sinabi ko kanina on energy affordability lahat yun patungo ‘yun sa sana ay umabot tayo dun sa makapagkontrata tayo ng kuryente na kaya nating bayaran,” she said. </p><p>The Commission is slated to discuss issues this month, with potential decisions impacting future electricity contracts and affordability measures. </p><p>“Naka agenda namin yan sa commission this month, so most likely next month or sooner we can resume the commercial operations.”</p>

<p>The Philippines plans to continue to rely on coal-fired power plants, especially on “young aged” power plants as they constitute a high number of megawatts which ensures enough baseload capacity until 2030.</p>

The Philippines plans to continue to rely on coal-fired power plants, especially on “young aged” power plants as they constitute a high number of megawatts which ensures enough baseload capacity until 2030.

'Young' aged coal-fired power plants ensure baseload capacity until 2030 – DOE

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'Young' aged coal-fired power plants ensure baseload capacity until 2030 – DOE

Nicole Agcaoili,

Addie Cuadra,

ABS-CBN News

Published Jun 20, 2024 01:14 AM PHT

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Updated Jun 20, 2024 01:55 AM PHT

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Power supply

Department of Energy

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