By Sudarshan Varadhan and Ashley Tang
KUALA LUMPUR (Reuters) -Philippines expects higher gas-fired and renewable power generation to fuel a projected 6.6% growth in power demand over the next two years, helping reduce dependence on coal, its energy secretary said on Friday.
The country will continue to boost gas use for power generation and plans to add more gas-fired capacity to address rising demand, its energy secretary Sharon Garin told Reuters in an interview on the sidelines of the ASEAN energy ministers meeting.
“The one thing that constrains that is the supply chain of gas. There are no turbines available,” she added.
Philippines has the most coal-dependent grid in Southeast Asia but is set to register a decline in coal-fired generation for the first time in 17 years in 2025, due mainly to rising gas and hydro output.
“Our renewable mix now is on the healthier side where we have wind, gas, solar and hydropower,” she said.
Garin said offshore wind could deliver about 1,500 MW of capacity if key ports become operational by 2027.
However, higher gas dependence at the expense of coal could hike power tariffs further, and the Philippines already has the second highest tariffs in the region behind Singapore.
“Transition is expensive. If you want cleaner power, you have to sacrifice on prices. We need to find the balance and hopefully there will be,” she said.
While committed to reducing coal dependency, she acknowledged that coal could be a last resort.
“If it’s really worst case, coal is always there…The most expensive electricity is no electricity at all. We can’t afford to have that in our country,” Garin added.
(Reporting by Sudarshan Varadhan and Ashley Tang; Editing by Nia Williams)
