BATAAN, Philippines — In a strategic shift to protect the national power grid from the “Third Wave” of global economic fallout, President Ferdinand “Bongbong” Marcos Jr. announced on Thursday, March 19, 2026, that the Philippines will move to secure additional coal imports. The decision serves as an emergency measure to ensure a stable electricity supply as the escalating Middle East conflict continues to threaten global petroleum stocks and disrupt international shipping routes like the Strait of Hormuz.
While the administration remains committed to its long-term goal of increasing renewable energy to 35% by 2030, the President emphasized that the current crisis necessitates a temporary “reopening” of aggressive coal procurement to prevent power shortages. Coal-fired plants currently account for 40.6% of the Philippines’ energy production, making them the primary “baseload” source for the archipelago.
“We were trying to move away from coal, but because of this crisis, we will reopen the importation and buying of coal so that our power plants do not run short of fuel,” the President told reporters during an inspection in Mariveles. “Our goal is to ensure that our power supply remains sufficient across all parts of the Philippines.”
The “Coal Shield” Strategy for 2026:
- Securing Indonesian Supply: The government is engaging in high-level talks with Indonesia, which currently provides approximately 98% of the Philippines’ imported coal. The focus is on ensuring that existing contracts are honored despite tightening regional markets.
- Diversifying Sources: To mitigate shipping disruptions, the Department of Energy (DOE) is also exploring alternative coal shipments from Australia and, in some cases, Russia, to maintain a “two to three-month” buffer stock.
- Mitigating Gas Price Spikes: With the cost of Liquefied Natural Gas (LNG) rising faster than coal, power generators like Meralco PowerGen (MGEN) are expecting higher dispatch schedules for coal plants, requiring an immediate increase in fuel inventory.
- Stretching the Buffer: The President noted that the country is working to expand its energy reserves from the standard 30-day supply to a more robust 90-day cushion to “soften the blow” of prolonged international volatility.
The pivot to coal comes at a critical juncture for the Philippine economy. The move is part of a broader ₱21.47-billion relief package ordered by the President to cushion the impact of the “diesel double whammy” on infrastructure, jobs, and basic commodities. This follows the recent deferment of transport fare hikes and the ₱60-to-$1 Peso slide, which has made imported oil significantly more expensive.
Despite the temporary reliance on fossil fuels, the President also ordered an acceleration of solar energy projects to “lessen the load” on traditional power plants. This aligns with recent pushes for solar-powered irrigation in the agricultural sector and the ₱1.8-billion Isabela Solar Park project.
As the Holy Week rush approaches and the Amihan season fades into a hot dry season, the government’s priority is to avoid “rotational brownouts” that could further strain the “Creative Economy.” For now, the administration is banking on a mix of strategic coal imports and aggressive energy conservation to keep the lights on and the economy moving.