War in the Middle East has pushed the Philippines into an energy crisis. President Ferdinand Marcos Jr. declared a national energy emergency after conflict in the region disrupted oil and gas shipments. The war affected global oil tanker routes through the Strait of Hormuz. The government warned that the country faces a critically low energy supply. The emergency is set to last one year.
War in the Middle East has thrown the Philippines into an energy crisis, forcing a national emergency declaration.
To keep electricity costs down, the Philippines is turning to coal. Reportedly, Energy Secretary Sharon Garin announced the plan amid soaring liquefied natural gas costs. The government wants to boost output from coal-fired power plants starting as early as approximately April 1. Officials also plan to maximize the use of domestic coal and buy more from Indonesia. Indonesia currently supplies roughly 98% of the country’s coal imports and has assured the Philippines it won’t limit orders.
Coal already plays a big role in powering the country. As of December 2025, coal made up an estimated 40.6% of the Philippines’ energy capacity. It generates between roughly 40% and 60% of the country’s electricity. In 2023, the country’s coal reliance reportedly surged 62%, the highest in Southeast Asia. Coal imports reached nearly 40 million metric tons in 2024, up from about 29 million in 2020, by some accounts. Most of the coal used comes from Indonesia, Australia, and Russia. Semirara Mining reportedly produces 97% of the country’s local coal.
President Marcos stressed the importance of restarting coal imports to keep the energy supply stable. Generation companies have been consulted about increasing production. MGEN, one of the major power firms, said it sources coal based on plant needs and expects higher operations ahead.
The government’s also looking for other fuel sources. The state-owned Philippine National Oil Company is reportedly negotiating to buy Russian crude after U.S. sanctions were lifted. The country’s only refinery, Petron in Limay, Bataan, would process any new oil purchases. The government also suspended public transport fare hikes and boosted subsidies to ease the burden on Filipinos. The Philippines, home to around 116 million people, faces some of the highest electricity costs in the region.
The Philippines had set a goal of roughly 35% renewables by 2030, but coal’s it’s still expected to dominate the energy mix for years to come. Globally, solar and wind energy have become the cheapest forms of new electricity generation, making the country’s coal pivot a costly long-term gamble. The emergency declaration, rooted in the disruption caused by the Iran War, marks a significant policy shift as the country prioritizes energy reliability over its clean energy ambitions.
References
- https://www.dawn.com/news/1984806
- https://teitimes.com/post/philippines-declares-national-energy-emergency-and-boosts-coal-power-output
- https://newsinfo.inquirer.net/2198408/marcos-counting-on-coal-imports-for-stable-power
- https://www.manilatimes.net/2026/03/24/videos/philippines-eyes-temporary-coal-push-to-counter-energy-turmoil/2306223
- https://www.straitstimes.com/asia/se-asia/philippines-eyes-temporary-coal-push-to-counter-energy-turmoil
