Philippines boosts gas-powered and renewable capacity to meet surge in demand

The Philippines' energy secretary stated on Friday that it expects increased gas-fired power generation and renewable energy to help fuel a projected 6,6% growth in demand for power over the next two year, reducing dependence on coal. In an interview conducted on the sidelines the ASEAN Energy Ministers Meeting, the country's energy secretary Sharon Garin said that the country would continue to increase gas usage for power generation. It also plans to add additional gas-fired capability to meet the rising demand.

The gas supply chain is the main constraint. She added that there are no turbines. The Philippines grid is the most coal dependent in Southeast Asia, but it will see a decline of coal-fired power for the first 17 years by 2025 due to the rise in gas and hydro output.

She said that "our renewable mix is now on the healthier side, where we have gas, solar, and hydropower." Garin stated that offshore wind power could reach 1,500 MW if certain ports are operational by 2027.

The Philippines has already the second-highest power tariffs in Asia, behind Singapore, due to its increased gas dependency.

"Transition costs a lot. You have to make sacrifices on price if you want cleaner energy. She said, "We need to find a balance and I hope there will be."

She is committed to reducing the dependence on coal, but she also acknowledges that coal can be used as a last option. "If the worst happens, coal will always be there...The most costly electricity is none at all. Garin continued, "We can't have that in our nation." (Reporting and editing by Ni Williams; Ashley Tang, Sudarshan Varadhan)

(source: Reuters)