Carving Out Coal in the Philippines:
Stranded Coal Plant Assets and the Energy Transition (Full Report)
The Philippine’s financial sector is massively exposed to the imminent stranding of proposed coal plants in the country, which amount to over 10,000 megawatts or US$21 billion (PHP1.05 trillion at PHP50 to US$1), according to a report released today by the Institute for Energy Economics and Financial Analysis (IEEFA) and the Institute for Climate and Sustainable Cities (ICSC).
The report recommends the Energy Regulatory Commission require carve-out clauses in all fossil fuel projects to protect consumers. A carve-out clause, which reduces the amount of power the utility must buy from the power generator, can exempt the distribution utilities from the consequences of reducing contracted capacity from coal plants.
The report also states investments in renewable energy and liquefied natural gas are more cost-effective and less risky for investors and consumers alike.