Press Release
January 6, 2022

Gatchalian to DOE: Ensure ample coal supply, avert possible higher prices amid Indonesia coal export ban

Senator Win Gatchalian called on the Department of Energy (DOE) to prepare for contingency measures to ensure sufficient coal supply and avert possible higher coal prices following the Indonesian government's decision to ban its coal exports this month.

The ban causes concerns on the country's supply of coal for power plants which, if insufficient, could lead to widespread blackouts.

"Part of the contingency measures should be to ensure the adherence of coal-fired power plants to the 30-day minimum inventory requirement (MIR)," Gatchalian said.

"The government should also consider looking for other suppliers especially in the coming weeks given the possible decline in stockpiles coming from Indonesia which could result in soaring coal prices," he added.

The Senate Energy Committee Chairperson expressed concern over this development considering that Indonesia is the biggest supplier of coal in the country. The Philippines derived 57.17% of power generation from coal as of 2020.

Data from the DOE showed that as of October 2021, the Philippines acquired 96.88% of imported coal supply from Indonesia, 1.82% from Australia, 0.35% from Vietnam, and 0.94% from other exporting countries. Of the total 42.476 million metric tons of coal produced and imported in 2020, 69.51% of which were imported and 30.49% came from local sources.

"This could be a wake-up call as well. The government should probably start rethinking and be more committed in reducing the share of coal by further diversifying our generation mix," Gatchalian said.

In pushing for the diversification of energy supply, Gatchalian said that there's around 28,000 megawatts (MW) of potential capacity from renewable energy (RE) sources based on awarded service contracts.

"If we maximize the 28,000 MW, we don't need to import coal and we don't need to import natural gas," he stressed.


Gatchalian sa DOE: Siguruhin ang suplay, mababang presyo ng coal sa gitna ng Indonesia export ban

Nanawagan si Senador Win Gatchalian sa Department of Energy (DOE) na maglatag ng mga contingency measures para tiyakin ang pagkakaroon ng sapat na suplay ng coal at maiwasan ang posibleng pagtaas ng presyo nito matapos ipagbawal ng Indonesia ang pag-export nito ng coal ngayong buwan.

Ang hakbang na ito ay bunsod ng mababa nilang suplay ng coal para sa power plants na kung hindi maagapan ay maaaring humantong sa malawakang blackout sa buong Indonesia.

Nagpahayag ng pagkabahala ang Senate Energy Committee Chairperson sa kadahilanan na ang Indonesia ang pinakamalaking pinagkukunan ng Pilipinas ng suplay ng coal. Noong 2020, 57.17% na power generation para sa buong bansa ay nagmula sa coal.

"Dapat maging bahagi ng contingency measures ay ang pagtitiyak na sinusunod ng coal-fired power plants ang alituntunin na nagtatakda sa kanila na magkaroon ng 30 araw na minimum inventory requirement (MIR)," sabi ni Gatchalian.

"Dapat isaalang-alang din ng gobyerno ang pagkuha ng mga panibagong suppliers na makakatugon sa ating mga pangangailangan lalo na sa mga susunod na linggo kung kailan posibleng bumaba ang stock ng bansa na magmumula sa Indonesia. At dahil dyan ay maaari itong magresulta sa pagtaas ng presyo ng coal," dagdag pa niya.

Batay sa datos ng DOE noong Oktubre 2021, nasa 96.88% ang naisuplay na coal ng Indonesia sa sa Pilipinas, 1.82% ay inangkat mula sa Australia, 0.35% naman ay nagmula sa Vietnam, at ang natitirang 0.94% ay binili mula sa iba pang mga bansa. Sa kabuuang 42.476 million metric tons ng coal na ginamit noong 2020, 69.51% ay imported samantalang 30.49% naman ay nanggaling sa local sources.

"Magsilbi rin sanang wake-up call ang pangyayaring ito. Dapat pag-isipan na ng mabuti ng gobyerno at magpasya sa pagbabawas ng paggamit natin ng coal sa pamamagitan ng pagtataguyod ng iba pang mapagkukunan ng enerhiya," sabi ni Gatchalian.

Sa pagsusulong ng tinatawag nating diversification ng suplay ng enerhiya, sinabi ni Gatchalian na mayroong humigit-kumulang 28,000 megawatts (MW) na potensyal na kapasidad mula sa renewable energy (RE) sources.

"Kung ipupursige natin ang 28,000 MW mula sa RE sources, hindi na natin kakailanganin pa na mag-angkat ng coal maski na ng natural gas," giit ng senador.

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