Coal continues to dominate electricity generation in Indonesia and the Philippines, reaching a record high of nearly 62% in 2023. A report by Ember, a London-based energy think tank, indicates that although both countries have significant potential for renewable energy like solar and wind, coal usage keeps increasing.
According to the report, coal generated almost two-thirds of the electricity in both countries. In the Philippines, coal usage rose from 59.1% in 2022 to 61.9% in 2023, while in Indonesia, it was slightly lower at 61.8%.
The increase in coal usage in Indonesia and the Philippines is driven by the surging energy demand. This has caused both countries to lag in utilizing renewable energy such as wind and solar compared to other ASEAN countries. Regionally, renewable energy contributes 4.4% to electricity generation, but in the Philippines, it is only 3.2%, and in Indonesia, a mere 0.3%. Vietnam leads in ASEAN with 13% renewable energy usage.
Indonesia and the Philippines are now ranked 8th and 9th in the world's most coal-dependent countries, surpassing China, which is ranked 12th. Although China remains the world's largest producer and consumer of coal, it has been gradually reducing its dependence, from 81% in 2007 to 60.7% in 2023. This reduction is due to China's significant investment in renewable energy, with wind and solar generating 15.5% of its electricity in 2023.
Despite having ambitious renewable energy targets—35% for the Philippines and 44% for Indonesia by 2030—the reality shows an increasing dependence on coal. Data indicates that coal dominates the growth in electricity demand in both countries, contradicting their commitments to reduce emissions and combat climate change.
While the Philippines was the first ASEAN country to ban new coal plants and plans to retire 900 megawatts of existing coal capacity by 2027, it still plans to build new coal projects by 2028. This reflects a slow transition and conflicts with its goal of reducing emissions by two-thirds by 2030 and increasing renewable energy to 35% by 2030 and 50% by 2040.
Indonesia, with a goal of net-zero emissions by 2060, is also facing challenges in its energy transition. Despite receiving $20 billion to retire coal-fired power plants early and promote renewable energy, the agreement to meet this goal is still hampered by funding disputes.
