Coal-fired power generation will be the main driver in the Philippines' power infrastructure segment in the next 10 years amid projections that the country will need an additional 12,300 MW of generating capacity by 2030.
"Growth in the Philippines power infrastructure sector over the next 10 years will be driven by investment in coal-fired generating capacity as companies and the government build a slew of new power plants to support growing electricity demand," BusinessWorld reported, citing an Aug. 4 report released by Fitch Group's BMI Research.
The fossil fuel accounts for 47.7% of the country's power generation sources, followed by renewable energy at 24.2%, the report said, citing data from the Department of Energy.
Continued reliance on coal over the next decade is expected to sustain imports of the fuel, about 70%, from neighboring countries like Indonesia.
"As the share of electricity generated from thermal — and especially coal — sources grows from 73% in 2017 to 77% in 2026, the Philippines will have to increase imports of fuels to feed newly built coal-?red power plants," BMI was quoted as stating.
BMI also underscored the "strengthened role" of Chinese and Japanese companies in financing and building power plants, including the CHINA DEVELOPMENT BANK, the China Exim Bank, the Japan International Cooperation Agency and the Japan Bank for International Cooperation, the report said.