AboitizPower: Choosing between coal and renewables

By Nimfa L. Estrellado Bridging the gap between coal and clean power were (L-R) Lou Jason Deligencia (AVP, AboitizPower), Mark Christian Mar...

By Nimfa L. Estrellado

Bridging the gap between coal and clean power were (L-R) Lou Jason Deligencia (AVP, AboitizPower), Mark Christian Marollano (DOE Supervising Specialist), Andrea "Morning" Madrid (VP, AboitizPower), and JK Huyatid (Corporate Affairs Manager, AboitizPower) at the "Power 101" seminar in Bataan. (Boots Gonzales)

LUCENA CITY, Quezon —The Philippines, despite holding over 178 GW of offshore wind potential, remains reliant on coal for the majority of its daily power, spotlighting a critical national energy conflict. Acknowledging this divide, major coal operator AboitizPower launched its "Power 101" educational series in Mariveles, Bataan on September 30, 2025.

The program tackled the Energy Balancing Act, or Energy Trilemma, to explore the core challenge: supplying stable, affordable power while meeting environmental goals. This required openly contrasting the grid's immediate reliance on thermal baseload power with the country's long-term mandate for cleaner energy.



Andrea "Morning" Madrid, Vice-President for Corporate Services - North Luzon AP-TBG, said that communicators must help establish the energy transition as a shared responsibility among the government, industry, and the public. She stressed that public consensus requires joint ownership of goals and challenges.

"The goal is to equip media and public information professionals with the necessary context and knowledge to provide balance and insightful coverage of the energy sector which is vital to national development. This foundation is essential for shaping intelligent public discussions about our country's economic future." Madrid said.

Madrid used the forum for a direct discussion, immediately taking aim at a key source of public confusion regarding the power supply chain. The program clarified the distinct roles of generation companies versus distribution utilities —a separation the public often misunderstands.

"The program was specifically designed to explain how power generation companies (like GN Power and Pagbilao Power) create electricity and how they differ from distribution companies that deliver it to homes and businesses. Understanding this basic separation is key to comprehending the overall structure of the Philippine power grid." she added.

Government's Renewable Energy Blueprint

Building on the discussion of power structure, the seminar then shifted focus to the government's long-term energy blueprint. Mark Marollano of the Department of Energy (DOE) presented the national energy strategy, which centers on Energy Efficiency and Conservation targeting 10% less waste of oil and electricity by 2040. This aggressive plan includes significant Renewable Energy expansion: the primary goal is a power mix of 35% clean sources by 2030, increasing to 50% by 2040.

The DOE also pushed parallel efforts for grid security, a challenge DOE officials compared to overhauling an aging highway system. This required comprehensive upgrades focused on Energy Resiliency, modernization via smart grid technology, and integration of new sources like electric vehicles and nuclear.

"The Philippines is actively contributing to global clean energy goals by developing Offshore Wind and exploring Marine-based Energy sources. These developments strengthen our energy independence and transitioning to a cleaner generation mix." Marollano said.

The DOE simultaneously uses policy levers such as tax incentives for green technology and physical construction projects like laying undersea cables to connect island grids to make the energy transition feasible. The sheer scale of these targets demands necessary infrastructure and regulatory action.

"Energy transition strategies include speeding up clean energy projects and creating a smart, environmentally friendly power transmission grid. We must also build port infrastructure for massive offshore wind farms and transition the transport sector to electric vehicles." he added.

The country possesses an immense Offshore Wind potential, which the World Bank estimates at over 178 GW of technical capacity, mostly requiring floating technology in deeper waters. To unlock this resource, the DOE has already approved over 90 Wind Energy Service Contracts (WESCs), representing a total potential capacity exceeding 65 GW. The government is simultaneously simplifying the permitting process to speed up project development and pursue the ambitious goal of installing 21 GW of offshore wind capacity by 2040.

DOE's Nuclear Energy Roadmap

The Department of Energy (DOE) is aggressively advancing its Nuclear Energy Program (NEP) to secure long-term baseload capacity without relying on fossil fuels. The official roadmap targets the country's first nuclear-generated kilowatt-hour by 2032, aiming for an initial capacity of at least 1,200 MW. This goal is supported by the recent enactment of the Philippine Atomic Energy Regulatory Authority (PhilATOM) Act, which establishes the independent legal and regulatory framework necessary to ensure nuclear safety, security, and compliance with international standards set by the International Atomic Energy Agency (IAEA).

A significant part of the strategy involves exploring the feasibility of using Small Modular Reactors (SMRs). These advanced reactors, which have a smaller footprint and can be deployed in diverse locations including islands, are seen as a suitable fit for the Philippine archipelago and a cleaner, long-term alternative to coal.

The DOE is also considering the potential rehabilitation of the mothballed Bataan Nuclear Power Plant (BNPP), with an official feasibility study expected to be completed by early 2026. They aims to scale up the total nuclear capacity to 4,800 MW by 2050, cementing its role as a key part of the national baseload mix.

The Critical Role of Baseload Power

Despite the ambitious renewable energy and nuclear targets, the current grid still relies heavily on fossil fuels to guarantee constant power. JK Huyatid, AboitizPower Corporate Affairs Manager, discussed the role of Baseload power. Discussions collectively looked at the country's power landscape and the operations of the coal-fired plants that keep the Luzon Grid humming. AboitizPower provided this context to emphasize the necessity of a constant, non-intermittent power source, regardless of weather conditions:

"The reality is that we can't run the grid on intermittent energy alone. Baseload power—the steady, continuous energy delivered by our facilities—is the crucial foundation that ensures the lights stay on 24/7, regardless of whether the sun is shining or the wind is blowing. Therefore, our thermal facilities are essential for keeping the entire power grid steady."Huyatid said.

However, Huyatid highlighted the necessity of this constant supply for the national economy. He explained the company frames its thermal power operations not as a liability, but as a transitional asset for national economic stability. Local communities often support this view, as they rely on the plants for substantial employment and local tax revenue, further complicating the closure decision:

"This constant supply ensures the grid stays stable, vital for factories, hospitals, and homes. For AboitizPower, managing our large thermal power assets is framed as a necessary step to bridge the gap until renewable energy technologies can consistently guarantee continuous, scalable power output." he added.

Energy analysts and environmental groups increasingly question this perspective. They argue that rapidly falling costs and improved reliability of Battery Energy Storage Systems (BESS) now make new coal-fired power financially and environmentally unnecessary, even for grid stability. 

Rechimer Daitol, Maintenance Senior Manager, described the multi-step coal-fired generation process to demonstrate the necessity of specialized pollution controls. He affirmed the company’s commitment to clean operation, noting that their coal-to-gas desulfurization asset removes impurities to meet strict environmental standards.

"Our commitment is to deliver reliable energy supply that is responsibly generated for the community, for the environment, and also to satisfy the demanding needs of the community. We are dedicated to operating with the utmost environmental and social responsibility at all times." Daitol said.

Company Strategy and Final Outlook

Lou Jason Deligencia, the AVP for Corporate Services - South Luzon and Metro Manila, AboitizPower TBG, gave the closing remarks, stressing that all parts of the power system—generation, transmission, and delivery—must work together for continuous improvement. He emphasized that this improvement involves both maximizing operational efficiency and reducing system losses across the entire grid. Deligencia used this analogy to illustrate why a diverse mix of energy sources is necessary for national stability.

"Since every energy source (coal, wind, oil) has advantages and disadvantages, the energy sector cannot be a single-instrument symphony; it requires a balanced portfolio to thrive. This means relying on a variety of sources to cover all aspects of demand." Deligencia said.

He emphasized that the initiative is part of AboitizPower's ongoing effort to help local media with industry knowledge and provide exposure to facilities crucial for national development:

"We believe that through continuous education and transparency, we can foster a deeper public understanding of the critical choices facing our energy future. Our long-term success is built on a shared commitment to sustainable and secure power." he added.

The event, managed by Pablo Joaquin Tanglao, the Regional Corporate Affairs Senior Specialist for South Luzon and Metro Manila, Aboitiz Power - Transition Business Group, included the seminar and a facility tour. Due to tight security protocols at the AboitizPower facility in Mariveles, media could not exit their vehicles during the plant visit, ensuring the integrity of the critical infrastructure.

To fully understand the weight of AboitizPower’s strategy, one must grasp the scale of their existing assets. AboitizPower's leading and growing role highlights the significance of this training in the regional energy sector. The company manages critical baseload assets in Bataan, including the GNPower Dinginin and GNPower Mariveles Energy Centers, which collectively provide a critical source of Luzon’s power supply.

These are standard coal-fired power plants that utilize conventional boiler systems where water is heated to turn turbines, solidifying the company's vital role in maintaining the grid's foundation. The 735-megawatt (MW) net Pagbilao Coal-Fired Thermal Power Plant recently expanded this operational scale when it transferred ownership to AboitizPower subsidiary Therma Luzon Inc. (TLI).

 The company’s total power capacity in the Pagbilao complex now totals over 1,100 megawatts (MW)—enough power for millions of homes—strengthening its capacity to ensure reliable energy.  For nearly three decades, the Pagbilao Power Station has provided a primary source of reliable energy, boosting the municipality of Pagbilao's economic standing.