Indonesia Vows to Maintain Steady Coal Supply to Philippines Amid Energy Crisis
The Philippines has secured Indonesia's commitment to maintain a steady coal supply amid Southeast Asia's highest electricity rates. The agreement was reached after high-level meetings in Jakarta, where Energy Secretary Sharon Garin led the Philippine delegation.
Garin said that Indonesian officials assured them of maintaining existing coal supply contracts between the two countries. The Philippines relies heavily on imported coal to meet its energy needs, with around 95% of its coal supply coming from Indonesia, which accounts for 99% of imports.
The country's dependence on coal-fired generation is evident in its energy mix, where coal currently accounts for around 60%. As the global oil crisis drives up prices, the Philippines has ramped up coal-fired power plant dispatch to cushion the impact on electricity rates. Garin expressed hope that Indonesia would lower coal prices if any changes were made to long-term contracts.
The Philippine delegation also explored opportunities with Indonesia for cooperation in liquefied natural gas (LNG) and renewable energy, including small-scale LNG projects for off-grid areas.