The Philippines is on course for its first annual decline in coal-fired electricity generation in nearly twenty years, according to market and government data, driven by increased power production from liquefied natural gas (LNG).
Despite having Southeast Asia’s most coal-dependent grid, the country’s non-subsidized electricity tariffs are the second highest in the region, after Singapore. The liberalized market allows power retailers to shift to LNG, unlike Indonesia and Malaysia, where cheap coal keeps subsidies manageable.
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Gas-fired generation grew more than 25% in June compared to the previous year and increased 5.2%, reaching 10.36 TWh in the first half of the year, based on data from the Independent Electricity Market Operator of the Philippines (IEMOP).
This contributed to raising the share of gas-fired power to 17.5% in the first half of 2025, up from a record low of 13.9% in 2023, which was caused by declining reserves at the Malampaya field, according to government data going back to 2003.
