First Gen wants fuel mix policy to protect consumers
FIRST GEN Corp. on Monday called on the government to formulate an energy mix policy that will protect consumers from price surges affecting specific power plant fuels.
The Lopez-led renewable energy company issued the statement amid volatility of coal prices this year.
“Prices of coal have more than doubled between January and October this year. Such price volatility should give us reason to pause and think of other fuels we can use to protect consumers from erratic fuel price movements. One solution is to cap the share of specific fuels we use to generate our electricity,” First Gen President and Chief Operating Officer Francis Giles B. Puno was quoted as saying.
According to June data from the Department of Energy (DoE), coal-fired power plants accounted for 33% or 6,666 megawatts (MW) out of the country’s 20,055-MW total generating capacity.
“We recognize the role of coal in the mix, but that kind of dominance being forecast for this single fuel source will not be good for the economy, especially now when coal prices have turned volatile,” Mr. Puno said.
Several think tanks believe that the share of coal in the country’s energy mix would go up to as much as 80% in 2030.
At the start of 2016, coal prices, based on the benchmark Newcastle, traded as low as $49 per metric ton, but went up as much as $108 in late October. This November, coal prices ranged between $90 to over $110 per metric ton. —