Page 6 - AsiaElec Week 02 2022

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Manila’s reliance on Indonesian

coal worries National Senate

PHILIPPINES WHEN Indonesia announced earlier in the politician then said: “(T)he government should
month that it was putting a block on coal exports also consider looking for other suppliers, espe-
to help alleviate critically low stockpiles at home, cially in the coming weeks given the possible
few nations were as immediately affected as the decline in stockpiles coming from Indonesia
Philippines. which could result in soaring coal prices.”
Coal prices went up across much of the Recent appeals by Manila, along with simi-
region, especially so in China and Australia, but lar calls from Tokyo and Seoul, have had some
it was in the neighbouring Philippines capital effect, with Indonesia in the past few days agree-
of Manila that the worst effects have been felt to ing to at least limited exports.
date. Alfonso Cusi, Manila’s current Energy Sec-
As a nation heavily reliant on coal for its retary, had appealed to Indonesia’s Minister of
energy supply with over 57% of its entire power Energy and Mineral Resources Arifin Tasrif,
generation linked to coal, Manila is more through his nation’s foreign ministry but also,
dependent than most on imports to fuel its crucially, through the Association of South-East
28 coal power stations around the sprawling Asian Nations (ASEAN) co-operation mecha-
7,000-island Southeast Asian nation. nism prior to a green light on exports resuming.
Last year, the Philippines relied on Indonesia While the full terms of the decision to partly
for a total of 96.88% of its coal supply – with the lift the export ban are still being analysed, some
remainder coming from Australia, Vietnam and movement has now been seen with vessels being
smaller suppliers across Asia. cleared to depart for Japan, China and South
Speaking to the Philippine Department of Korea, according to Japanese sources.
Energy (DOE) in the wake of the announcement Carriers earmarked for these nations had
blocking exports by Jakarta, Senator Sherwin been left at anchor off Kalimantan in Borneo for
Gatchalian said: “This could be a wake-up call over a week.
as well. The government should probably start Issues in the Philippines, though, are not as
rethinking and be more committed in reducing critical as politicians are making out; at least not
the share of coal by further diversifying our gen- according to the vice-president of Manila Elec-
eration mix.” tric Co. (Meralco).
The serving chairman of the Senate energy Claiming that “at least in the coming couple
committee Gatchalian went on to say that the of months, there will be no supply disruption,”
export ban is worrying for coal power plants Joe Zaldarriaga said this week that in the wake
across the country looking to secure supplies, of the export ban, the Philippines could simply
adding that a lack of supply could lead to power import more from Australia and elsewhere.
cuts across large areas. This is not a mindset shared by influential
Philippine coal usage last year totalled almost energy advocacy campaigners Power4People
42.5mn tonnes, with 69.5% of the total imported. Coalition (P4P), who have repeatedly pressed
An estimated 2.3mn tonnes per month was the central government in Manila to turn away
imported from Indonesia alone in 2021. from coal to help avoid fluctuation in electricity
Just 30.5% of the coal used in the Philippines costs; P4P member Gerry Arances said: “As we
is understood to be mined domestically. wait for the implications of Indonesia’s export
A statement released later by Senator ban to be reflected (on our monthly bills) …
Gatchalian continued: “(P)art of the contingency our country’s vast indigenous renewable energy
measures should be to ensure the adherence of capacity waits to be harnessed”, adding: “(W)
coal-fired power plants to the 30-day minimum e must begin by putting a stop to any new coal
inventory requirement” in a reference to what plant still in our pipeline.”™
some analysts have in the past considered a lim-
ited following of stockpile regulations by some of
the nation’s operators.
Addressing the obvious over-reliance on
Indonesian coal suppliers, the up and coming

P6 www. NEWSBASE .com Week 02 12•January•2022