Philippines to Continue Reliance on Coal, IEA Predicts

The Philippines is likely to maintain its coal consumption this year, with coal-fired power plants still being depended on for baseload electricity needs, the International Energy Agency (IEA) said in its Coal Mid-Year Update 2026. In its Coal Mid-Year Update 2026, the IEA said coal demand in Southeast Asia is projected at around 574 million tons, fueled by strong demand from Indonesia and Vietnam. “Elsewhere in Southeast Asia, including the Philippines and Malaysia, coal demand is expected to remain broadly stable, as existing coal-fired plants are already operating at high load factors,” IEA said. The Philippines consumes more coal than it can produce, with about 99% of its supply sourced from Indonesia. For power generation, coal dominates the national power generation mix with a share of around 60%. By 2027, coal use within the region is expected to resume its upward trajectory, driven by rising domestic electricity demand in the Philippines, Indonesia and Vietnam. The IEA noted, however, that demand will remain sensitive to weather conditions affecting hydro production. The Philippines and Vietnam are set to lead thermal coal import growth in the region. “But this increase is too small to outweigh falling imports in China and other mature import markets,” the organization said. During the onset of the Middle East conflict, the Department of Energy pushed to fast-track renewable energy projects and scale up the dispatch of coal generation to shield consumers from soaring global energy costs during the energy emergency. — Sheldeen Joy Talavera