Coal debate heats up

“Many other sources of electricity can join the bid but will relatively be more expensive, according to the now Leyte governor.

Developing economies’ search for low-cost energy mostly results in dependence on coal since the resource remains the cheapest way to produce electricity.

Based on Department of Energy records, the country obtains 8.7 gigawatt of electricity from coal comprising 44.5 percent of the installed grid capacity.

Combined with oil-based plants such as diesel, oil thermal and gas turbine that are considered the biggest pollutants by environmentalists, the share of this energy mix comes out to 56 percent.

Natural gas makes up 19 percent while renewable energy corners an encouraging 25 percent of the energy supply.

The global demand to discard fossil fuels within 10 years has placed huge pressure on developing nations such as the Philippines that lack the technology and capital to shift from coal abruptly.

The argument against the migration to renewable energy is that poor countries contribute little to the greenhouse gases, yet they are the most penalized in terms of the weather impact and the demand to comply with international commitments.

The government, thus, has to balance the cost of electricity supply and the need to join the global march towards renewable energy (RE), which is among the aims of the competitive selection process (CSP) for supply contracts.

Former Energy Secretary Jericho Petilla said in acquiring contracts through the CSP coal will almost always come out on top.

“Before I left, we were drafting the CSP provisions which were controversial then but which are actually being already followed by the Energy Regulatory Commission,” he said.

“The provisions are simple — if you want the supply of a 500-megawatt plant, you have to bid it out and put it in the open,” Petilla added.

With the CSP, “you get not only the cheapest fuel source but also the power plant operator that will comply with the other requirements in the power supply agreement.”

He indicated that reducing coal in the power supply equation would, without doubt, raise electricity prices even with the CSP.

Many other sources of electricity can join the bid but will relatively be more expensive, according to the now Leyte governor.

There is a moratorium on the building of coal plants but when it comes to remote areas we have diesel plants.

“Bunker fuel is more expensive and more polluting than coal,” according to Petilla.

Spot areas will have to use diesel plants because their needs are not big enough.

Instead of a ban on coal plants, the country would be better off setting an emission standard that would control the pollutant level such as those provided under the Euro 4 or 5 standard.

Petilla explained that coal-fired plants will then simply upgrade to achieve the prescribed emission level.

“Then we can apply the standard on all power plants and not just the coal-fired generators,” he said.

Another former energy chief, Al Cusi, said the coal moratorium implemented by the Department of Energy in 2020 was a well-considered policy move that seeks to move towards the global trend of clean energy.

“It’s crucial to understand that while the moratorium applied to new greenfield coal-fired power projects, existing brownfield and expansion initiatives, including those with secured financial backing, remained unaffected,” Cusi said.

“Therefore, any delays or setbacks in these projects cannot be directly linked to the moratorium,” he added.

The moratorium, Cusi indicated, was rooted in the imperative need for a more agile and adaptable power generation landscape.

It aims to align with the transition towards RE while upholding the reliability and stability of the electricity grid.

Cusi said encouraging inflexible power generation such as coal contradicts this strategic shift.

“Central to the moratorium’s objectives was the enhancement of grid reliability by augmenting the power system’s capacity to withstand disruptions while optimizing overall grid operations,” he said.

The Department of Energy recently announced more than 4,000 megawatts will be added this year which are investments that were the result of “tangible outcomes of policy adjustments towards more sustainable and flexible energy solutions,” Cusi said.

The pros and cons, thus, encourage more debate about the need to balance energy security and the inequitable impositions coming mostly from rich nations that are the chief source of environmental abuse.

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