BIZ BUZZ: Coal as cheapest — a scam?
Many say cool coal prices make it ideal to fuel the Philippines’ power needs. But is it cheap? Really?
For Carlos Lorenzo Vega, vice president of clean energy producer First Gen Corp., affordability accompanies different faces.
“Affordability has many dimensions to it. If we say that this fuel source is expensive today, that could not be true tomorrow,” Vega said at the EJAP forum.
The executive said people in Mindanao boasted how “cheap” coal was. However, it took a hit when Indonesia imposed an export ban, sending the prices to skyrocket to $250 per metric ton from $70.
When the war erupted between Russia and Ukraine, a similar thing happened, with the prices surging as high as $380 per metric ton, he added.
“Our demand, my conclusion is, that it will not stop growing. And if it does not stop growing, the question is, what is the best way to serve it?” Vega asked.
