Renewables Alone Not Enough, ACEN Says

ACEN Corp. is warning that relying solely on renewable energy may not be enough to ensure  stable electricity supply in the Philippines, particularly during periods of peak demand and price volatility.

Speaking in separate briefings, ACEN President and CEO Eric Francia emphasized that while the company remains committed to scaling up clean energy, a “renewables-only” strategy is not a complete solution. He pointed to persistent grid congestion and slow infrastructure development as major bottlenecks that continue to limit how quickly renewable capacity can be deployed at scale.

ACEN is targeting 7 gigawatts of operational capacity by 2027, with a significant share expected to come from the Philippines. Despite this, Francia noted that broader systemic issues, particularly transmission constraints, remain unresolved and could undermine the effectiveness of an aggressive renewables rollout.

Coal Comeback Faces Structural Hurdles

The Department of Energy (DOE) is currently studying whether to lift the moratorium on new coal-fired power plants imposed in 2020, as concerns grow over rising fuel prices and their impact on electricity rates.

Energy officials have signaled openness to reconsidering coal, with authorities noting that the fuel remains one of the cheapest sources of power during periods of crisis. However, Francia expressed skepticism that coal could meaningfully return as a cornerstone of future capacity.

He highlighted that coal projects face increasing difficulty in securing financing, alongside declining social acceptance. Even if the moratorium is lifted, Francia said the likelihood of a large-scale coal resurgence remains low.

“We can’t depend on coal saving the day in terms of energy security,” he said, reiterating that structural and financial barriers make new coal development challenging.

Coal currently accounts for more than 60 percent of the country’s power generation mix, an indication of its continued dominance despite the policy shift toward cleaner energy.

Gas Reliance Also Risky

While the government’s Power Development Plan envisions natural gas stepping in to fill the baseload gap left by coal, ACEN flagged risks associated with this strategy.

Francia pointed to the volatility of imported liquefied natural gas (LNG), which is vulnerable to geopolitical instability and global price fluctuations. These risks could complicate efforts to maintain affordable electricity while transitioning the energy mix.

With the Philippines already facing some of the highest electricity prices in Southeast Asia, he warned that overreliance on any single fuel source could expose consumers to further cost pressures.

Diversified Strategy

ACEN is advocating for a more balanced and diversified energy approach, combining accelerated renewable deployment with energy storage systems and complementary conventional sources.

Francia stressed the need to “double down” on renewables and battery storage while acknowledging that transition challenges require pragmatic planning. He also urged policymakers to revisit assumptions in the current energy roadmap, particularly around the roles of coal and natural gas.

The Philippines is targeting a 35 percent renewable energy share in its generation mix by 2030. Achieving this goal, industry players say, will depend not only on capacity expansion but also on resolving infrastructure gaps and managing supply risks across the entire energy system.

Source:

https://mb.com.ph/2026/04/27/acen-says-renewables-only-strategy-risky-for-philippines

https://business.inquirer.net/587347/acen-coal-no-energy-savior-despite-middle-east-tensions

https://www.bworldonline.com/corporate/2026/04/27/745505/acen-urges-scaling-up-renewables-over-coal/