Coal continues to dominate electricity generation in Indonesia and the Philippines, reaching a record high of just about 62% in 2023. A report by Ember, a London-based energy think tank, said that while each countries have significant potential for renewable energy similar to solar and wind, coal use is rising steadily.
Coal generated almost two-thirds of electricity in each countries, the report said. In the Philippines, coal use rose from 59.1% in 2022 to 61.9% in 2023, while in Indonesia it was barely lower at 61.8%.
The rise in coal use in Indonesia and the Philippines is on account of rising energy demand. This has caused each countries to lag behind in using renewable energy, similar to wind and solar, in comparison with other ASEAN countries. Regionally, renewable energy contributes 4.4% to electricity generation, but within the Philippines it is simply 3.2% and in Indonesia just 0.3%. Vietnam leads ASEAN with 13% use of renewable energy.
Indonesia and the Philippines are actually the eighth and ninth most coal-dependent countries, ahead of China, which is twelfth. While China stays the world’s largest producer and consumer of coal, it has been step by step reducing its dependence, from 81% in 2007 to 60.7% in 2023. This reduction is on account of China’s significant investment in renewable energy, with wind and solar energy expected to generate 15.5% of its electricity in 2023.
Despite ambitious renewable energy targets—35% for the Philippines and 44% for Indonesia by 2030—the truth is a growing reliance on coal. Data shows that coal is dominating electricity demand growth in each countries, contradicting their commitments to scale back emissions and combat climate change.
Although the Philippines was the primary ASEAN country to ban recent coal-fired power plants and plans to phase out 900 megawatts of existing coal-fired capability by 2027, it still plans to construct recent coal projects by 2028. This reflects a slow transition and runs counter to the goal of reducing emissions by two-thirds by 2030 and increasing renewable energy to 35% by 2030 and 50% by 2040.
Indonesia, which goals to succeed in net-zero emissions by 2060, also faces challenges in its energy transition. Despite receiving $20 billion to phase out coal-fired power plants early and promote renewable energy, agreement to satisfy the goal stays hampered by disputes over financing.
