Philippines’ Renewable Energy Shift: A Path to Sustainability

The Philippine government, through its Department of Energy (DOE), has issued a formal request to power generation companies to voluntarily retire their coal-fired power plants ahead of schedule. This move aims to accelerate the adoption of renewable energy technologies, address the global climate crisis, and meet the country’s increasing energy demands. At the 28th United Nations Climate Change Conference (COP28), Energy Undersecretary Felix William Fuentebella emphasized the importance of an early and orderly transition from coal to renewable sources, aligning with the national goal to achieve a 50% renewable energy target by 2040​​.

This initiative follows the footsteps of ACEN Corp., an Ayala group entity, which pioneered a coal-to-clean project in collaboration with The Rockefeller Foundation and the Monetary Authority of Singapore. ACEN’s commitment to renewable energy was further demonstrated when it became the first local company to divest from a coal-fired plant in 2022​​​​.

The DOE is encouraging the participation of business owners and institutions in similar energy transition endeavors, noting the current energy mix in the Philippines: nearly 60% from coal and only 22% from renewables​​. The country’s energy demand is set to rise from 17,000 MW to 25,000 MW by 2028, with the majority of the required additional capacity projected to come from renewable sources​​.

While the country is lauded for its strong commitment to energy transition, the practicality of a swift move away from coal is acknowledged as challenging. Ensuring power accessibility, especially in remote areas, is a critical consideration in tandem with coal retirement. The energy transition strategy extends beyond just phasing out coal; it encompasses expanding electricity access, establishing a smart and green grid, improving distribution systems, enhancing energy storage, and ensuring affordability​​​​.