First Gen Chair: Philippines' Coal Use Risks AI & Clean Energy Goals
In a recent statement before First Gen Corp.’s shareholders, Chairman Federico Lopez expressed concern over the Philippines’ continued reliance on coal for power generation, warning that renewed coal initiatives could undermine the country’s progress in decarbonization, according to reports by Bilyonaryo.
He highlighted that coal still accounts for 62% of electricity generation in 2024, despite efforts by the Department of Energy’s (DOE) Renewable Energy Roadmap and the moratorium on new coal projects announced in 2020.
Lopez pointed out that even as the government pushes for cleaner energy alternatives, there are still efforts to expand coal plants, potentially worsening the country’s electricity grid’s dependence on coal and further increasing carbon emissions.
He stressed that this reliance on coal for cost reasons could harm long-term decarbonization goals. He warned“If the grid moves in the wrong direction, it will nullify the decarbonizing effects of electrification. Electric vehicles, for example, could effectively be powered by even more coal.”
The Impact of Electrification and AI on Energy Demands
Lopez specifically noted the potential consequences of electrification, especially in sectors like electric vehicles (EVs). As EVs become more prevalent, Lopez explained, if the grid continues to rely on coal, the environmental benefits of electric mobility could be undermined. The increased reliance on coal-fired power would offset the progress made by electrification in reducing overall carbon emissions.
Lopez also expressed concerns about the growing demands of artificial intelligence (AI), which he described as a tool capable of solving complex global challenges.
However, Lopez warned that the rapid expansion of AI technologies would significantly increase pressure on the energy grid. He cited projections that AI alone could require an additional 45,000 megawatts of capacity globally by 2030, placing even more strain on an already overloaded grid.
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The Global Energy Transition and Challenges Ahead
Lopez pointed out that, even without factoring in the increased energy demands from AI, the global energy transition is expected to require five times more electricity and ten times more clean electricity by 2050. This rapid growth in electricity demand highlights the urgent need for efficient, clean energy solutions to support global decarbonization efforts.
While technologies such as renewables, battery storage, and electric vehicles have become more affordable in recent years, driven by China’s manufacturing scale, Lopez cautioned that deglobalization could slow the adoption and progress of these technologies, making the transition to clean energy more challenging.
Innovative Solutions for the Future
Lopez also highlighted the potential of Small Modular Reactors (SMRs) and Micro Modular Reactors as innovative solutions for cleaner energy, though he acknowledged that these technologies remain 5 to 10 years away from commercial deployment.
Despite these challenges, Lopez emphasized that First Gen Corp. continues to evolve its business model to stay relevant and profitable amid the rapid decarbonization trends.“We are continuing to shape our platform of businesses to help shepherd our country’s energy use toward staying relevant as well as profitable in this rapidly decarbonizing world,"he concluded.
