The Philippines has declared a state of “national energy emergency” in response to a global oil shock triggered by the war in Iran, also moving to ramp up coal generation even as officials insist the country’s long-term clean energy transition remains on track.
Emergency policies to secure fuel supplies and tap more coal-fired power will not derail government targets to increase the share of renewable energy in the power mix in the coming decades, said Rowena Guevara, undersecretary of the Department of Energy (DOE), who also supervises the Renewable Energy Management Bureau and Electric Power Industry Management Bureau.
“The declaration means procurement of additional barrels of oil will be for transportation, [with a] very small amount used for power, so there will be no impact on long term energy security goal,” Guevara told Eco-Business.
Philippine president Ferdinand Marcos, Jr announced the executive order on Tuesday, which will give the government broader authority to address fuel hoarding and profiteering, expedite approvals for energy projects, and direct agencies to prioritise interventions that cushion the impact of soaring oil prices on households and businesses.
Win Gatchalian, senator and former chairman of the Senate Committee on Energy, said at a forum in Makati on Wednesday that the declaration had to be done to “trigger” bilateral agreements with countries that the Philippines does not normally purchase oil from like Russia, Latin America, and Canada.
The Philippines needs to secure contracts beyond 60 days, which is roughly how long existing fuel inventories and buffers can cover demand, after which supply risks rise sharply without new deliveries in the pipeline.
DOE secretary Sharon Garin also said on Tuesday that the Philippines plans to “temporarily” ramp up generation from its coal-fired power plants to keep electricity prices in check as the war disrupts gas supplies.
But Guevara said while the coal boost is in place of oil and gas, renewable energy is still a “priority dispatch and therefore the goal will be achieved.” The Philippines has pledged to sharply expand the share of renewable energy in its power mix, targeting at least 35 per cent by 2030 and 50 per cent by 2040, under its National Renewable Energy Programme, even as it continues to invest in new gas infrastructure to shore up near-term energy supply.
The Philippines is among the hardest hit Southeast Asian economies because it imports almost all of its oil from the region, whereas consumers in Indonesia, Thailand, and India remain partly insulated because fuel subsidies and regulated prices absorb some of the cost.
In contrast, ordinary people in the Philippines suffer a sharper inflation blow from higher oil prices, as market‑driven fuel pricing and limited government subsidies will put more direct pressure on consumers to absorb the costs.
Many government offices have switched to a four-day workweek to save energy, and Marcos, Jr has called on the public to car pool. The government has also been handing out US$83 each to tens of thousands of autorickshaw and jeepney drivers around Manila who are suffering from the higher prices. More than 1.2 million households in Philippine island communities and off-grid areas face an increased risk of power outages due to the surge in oil prices.
