The Philippines was among the 195 signatories to the Paris Agreement on Climate Change, pledging to reduce its carbon emissions down by 70 percent by 2030. To fulfill this, goals should be geared towards a cleaner form of energy. The low-carbon scenario envisioned by the Department of Energy entails a 30-30-40 power generation mix. Coal and liquefied natural gas or LNG would comprise 30 percent each and the remaining 40 percent from renewable sources of energy. At present, however, coal comprises 42 percent of our power supply. Coal-fired power plants have higher carbon emissions and pollutants compared to other sources of energy which, contrary to our pledge, harm the environment.
LNG is a promising source of power supply as it emits 40 percent less pollution than coal or oil and, in lesser amounts, the following compounds: sulfur dioxide, nitrogen oxides, and other particulate matter, that contribute to accumulation of the greenhouse gases and acid rain. LNG produces 45 percent less carbon dioxide than burning coal and 30 percent less than burning fuel oil. Production is deemed more efficient.
LNG is regarded to be more cost efficient as world prices continue to drop. LNG produces 7,650 kWh per ton of fuel compared to 1,927 kWh produced by coal. This equates to 0.0425 US dollar-charge for fuel costs per kWh using coal, while LNG charges only 0.0392 US dollars. Consequently, the U.E. Energy Information Administration computed that operating and generation costs are generally cheaper for LNG than for coal. Conversion to natural gas also reduces oil imports by 30 percent according to the Malampaya management.
The United States and Singapore have abandoned the use of coal and switched to LNG power plants.
Last week, I filed House Bill Number 961 entitled, “A Resolution Calling for an Investigation by the Appropriate Committee of the House of Representatives on Converting Existing Coal-Fired Power Plants into Liquefied Natural Gas Power Plants.” The shift to LNG aims to ensure lower energy bill for end users. We are also aware that there are coal-related hidden health costs which are passed on to host communities, and eventually shouldered by the government. Among the known health consequences of exposure to coal emissions are lung cancer, asthma, and cardio vascular problems.
Energy Secretary Alfonso Cusi stated in numerous occasions that the government will pursue upgrades in electricity production. The DoE found out that there was a capacity shortfall of 184 MW in Luzon in 2015 and up to 635 MW in 2016. Clearly, our current source of energy will not suffice to sustain the increasing demands. New generation capacity is needed. This is an opportunity for us to fully switch to LNG-fired power plants which are cost effective, environmentally responsible, and will bring to compliance our commitment to the international community per the Paris Agreement.