Coal dependence is growing in Indonesia and the Philippines despite untapped renewable energy potential

Indonesia and the Philippines are grappling with a sharp increase in their dependence on coal. Both have now overtaken China and Poland in terms of their use of coal to generate electricity.

In 2023, Indonesia’s share of electricity generation from coal reached a record 61.8%, putting it ahead of Poland, which it overtook in terms of coal dependence. The Philippines saw an even bigger increase, with coal accounting for 61.9% of its energy mix, overtaking China and Indonesia to become the most coal-dependent country in Southeast Asia.

The growing reliance on coal in these two countries comes amid a global push for renewable energy sources. Despite the significant potential of wind and solar, Indonesia and the Philippines have yet to fully exploit these resources. In Indonesia, renewable energy growth has been slow, with solar and wind generation accounting for just 1.2 TWh since 2013. Similarly, the renewable energy sector in the Philippines has made limited progress, with wind and solar power accounting for 3.7 TWh of generation in 2023.

The rest of the ASEAN region also saw an increase in coal dependence, with its share of electricity generation rising from 31% in 2022 to 33% in 2023. However, this increase followed two consecutive years of decline and remains below 2020 levels.

Indonesia’s electricity demand grew by 17.1 TWh (5.1%) in 2023, with coal-fired power contributing 11.5 TWh (5.6%) of that growth. Despite a 9% increase in bioenergy generation, total clean energy production fell by 0.3% in Indonesia.

In the Philippines, coal production increased by 6.5 TWh (9.7%) in 2023, outpacing electricity demand growth of 5.2 TWh (4.6%). Wind and solar power production in the Philippines increased by 0.9 TWh (31%), meeting 17% of total demand growth.

This reliance on coal contrasts sharply with China and Poland, where strong growth in wind and solar power is reducing coal’s share of the energy mix. In 2023, Indonesia became the world’s fifth-largest coal-fired power producer, surpassing South Korea. Meanwhile, the Philippines remains the world’s 17th-largest coal market.

Despite their growing reliance on coal, Indonesia and the Philippines have significant untapped potential for wind and solar power. 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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