Indonesia and the Philippines are seeing a rapid increase in their reliance on coal, with both countries now surpassing China and Poland in their reliance on coal for electricity generation.
In 2023, the share of coal-fired electricity in Indonesia reached a record high of 61.8%, putting the country ahead of Poland, which it surpasses in terms of coal dependence. The Philippines saw an even sharper increase, with coal accounting for 61.9% of its electricity mix, surpassing China and Indonesia to become the most coal-dependent country in Southeast Asia.
The two countries’ increasing reliance on coal comes amid a global push toward renewable energy sources. Despite their significant wind and solar potential, Indonesia and the Philippines have yet to fully exploit these resources. In Indonesia, renewable energy growth has been slow, with solar and wind generation contributing only 1.2 TWh since 2013. Similarly, the Philippines’ renewable energy sector has made limited progress, with wind and solar accounting for 3.7 TWh of generation in 2023.
The rest of the ASEAN region also saw an increase in coal reliance, with coal’s share of electricity generation increasing from 31% in 2022 to 33% in 2023. However, this increase follows two consecutive years of decline and remains below 2020 levels.
Indonesia’s electricity demand increased by 17.1 TWh (5.1%) in 2023, with coal-fired power contributing 11.5 TWh (5.6%) of the increase. Despite a 9% increase in bioenergy production, clean energy production overall decreased by 0.3% in Indonesia.
In the Philippines, coal-fired electricity generation increased by 6.5 TWh (9.7%) in 2023, outpacing the 5.2 TWh (4.6%) increase in electricity demand. Wind and solar generation in the Philippines increased by 0.9 TWh (31%), meeting 17% of the total increase in demand.
This reliance on coal stands in stark contrast to China and Poland, where strong growth in wind and solar power is reducing coal’s share of the electricity mix. In 2023, Indonesia became the world’s fifth-largest producer of electricity from coal, overtaking South Korea. At the same time, the Philippines remains the world’s 17th-largest coal market.
Despite their growing reliance on coal, Indonesia and the Philippines have considerable untapped potential for wind and solar energy. Accelerating the deployment of these renewable energy sources could help both countries meet their growing electricity demand more sustainably and reduce their reliance on coal.
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