A SOLAR farm in Burgos, Ilocos Norte. Renewable energy was among the 74 realized mergers and acquisitions last year, with a total deal value of $4.6 billion. Photo courtesy of PHILIPPINE NEWS AGENCY
NEWS

Group: Coal push under energy emergency risks Philippine renewable shift

Lade Jean Kabagani

The independent non-governmental organization, Climate Conflict Action Asia (CCAA), on Thursday cautioned that the government’s plan to ramp up coal-fired power generation amid the ongoing energy crisis risks derailing the country’s transition to renewable energy.

The statement came days after President Ferdinand Marcos Jr. declared a State of National Energy Emergency and directed the Department of Energy (DOE) to ensure a stable and affordable electricity supply as global fuel markets reel from the conflict in the Middle East.

Reframing the issue, CCAA said the crisis should instead be treated as an opportunity to accelerate—rather than delay—the country’s shift away from fossil fuels.

“The DOE’s plan to permit and even increase electricity generation from coal, albeit temporarily, discredits the government’s claim of a shift to renewable energy,” the group said.

The DOE earlier floated increasing output from coal-fired power plants to offset possible supply shortages and spikes in electricity prices. 

But CCAA argued that such a move would provide neither immediate relief nor long-term stability.

“Electricity prices are set by power contracts between firms and the government, and the broader effects of the current global crisis are beyond our control,” it said, adding that expanding coal use could worsen environmental degradation.

Instead of increasing coal capacity or lifting the moratorium on new coal plants, the group urged the government to allow existing non-renewable energy facilities to operate without disruption while fast-tracking access to renewable energy sources.

CCAA emphasized that dependence on imported fossil fuels leaves the country vulnerable to global shocks, saying a faster transition to renewables would help insulate the Philippines from volatile international markets.

The group also questioned the government’s suspension of excise taxes on fuel, describing it as a temporary measure that does not guarantee long-term affordability. 

It proposed imposing a windfall tax on companies benefiting from the crisis and using the revenue to fund renewable energy initiatives.

Further, CCAA called for expanding programs such as the government’s solar financing initiatives to reach more households, stressing that “access to affordable, clean, and sustainable energy is a right, not a privilege.”

While critical of the coal strategy, the group acknowledged the administration’s broader effort to cushion Filipinos from the impact of the crisis, particularly vulnerable sectors already grappling with rising food costs and limited access to basic services.

“The energy crisis must not be used as an excuse to further delay or renege on the country’s transition to renewable energy,” CCAA said. “If at all, this crisis provides an opportunity to prioritize the shift.”