While most investors around the world are scrambling to ditch coal plants like bad habits, a defiant European billionaire is still pushing all his chips in for this technology - scooping up these assets in a brazen move to cement coal’s place in the energy mix for many more decades to come.
Czech billionaire Pavel Tykac, who owns Sev.en Global Investments, is on globe-trotting coal acquisition expedition - snapping up these power plants like rare collectibles. His reported latest conquest? A two-unit coal plant in Vietnam, but he’s not stopping there—his sights are still set on expanding his coal empire across Asia, Australia, and the United States, eyeing everything from coal mines to coal-fed plants.
Sources in the coal industry suggest that Tykac’s buying spree is fueled by a fire-sale frenzy sweeping through energy markets, as many companies and even some countries are eager to flaunt their ESG credentials and have been seriously embracing energy transition goals, hence, they tend to unload coal plants even at bargain basement prices.
The Czech business magnate started his pursuit to extend coal’s reign in his own country -- seizing both a coal mine and a power station, then he expanded his venture in other European energy markets.
Coal’s defiance of the energy transition
Whether at the negotiation chambers of the United Nations-led climate change diplomacy or at the power-laden policy tables of energy markets, the burning question persists: will coal be finally cast aside in the evolving energy mix, or does its grip on the future remain unyielding?
And this very question echoes at home - that despite Philippine policymakers’ fervent drive to propel renewable energy (RE) investments on a massive scale - a relentless tug-of-war still rages between ambitious green goals and the deep-rooted reliance on fossil fuels to still power the nation’s economic growth.
The Department of Energy (DOE) has steadfastly declared that: despite the 2020 coal moratorium, projects already in the pipeline—or those with permits and pre-development milestones—will continue to underpin the nation’s energy capacity, a harsh necessity in the face of a glaring baseload supply deficit that demands immediate action.
Clashing voices reverberate: staunch anti-coal environmentalists and advocacy groups ferociously condemn the government for greenlighting new coal plants, while pro-coal investors argue that developing nations like the Philippines deserve a slower, more measured energy transition – all that while pointing fingers at industrialized nations for the lion's share of the climate crisis now jeopardizing the planet.
For now, at least three major players have thrown their hats into the ring, unveiling plans for additional coal plant developments: the Aboitiz group’s 150-megawatt Therma Visayas expansion in Cebu, Meralco PowerGen’s massive 1,200MW Atimonan planned coal facility in Quezon, and Semirara Mining and Power Corp's targeted move to resurrect its 700MW Saint Raphael project in Batangas.
In bold strokes, several of the country’s leading banks - chief among them RCBC of the Yuchengco group and Ayala-led BPI - have unflinchingly declared that they will no longer finance new coal plants, though they’ve tempered this commitment by acknowledging that existing coal projects, those funded before the shift and already on their books, will continue to be part of their loan portfolios.
Other banks, however, have taken ‘more conservative stance’ on coal project financing, leaving the field still open, thus, it is interesting to see which financial giants will blink first to reinforce the gamble for the continued installation of new coal plants in the country despite the growing pressure for change.
It’s also a guessing game whether the DOE’s coal retirement plan will be taken seriously under the current administration, or if the government will hold on to every last megawatt of existing coal capacity to stave off tight supply predicaments - particularly for the overburdened grids of Luzon and Visayas.
Suffice it to say that the domestic energy market has morphed into an unforgiving mystery puzzle—packed with more questions than answers about coal's future, as this well-entrenched tech is now fighting tooth and nail for its reign while it locks horns with the country's ambitious green energy transformation.
For over two decades, the Philippines has been caught in an endless loop of threatening power crisis—that was since the deregulation and restructuring of its power sector in 2001 by virtue of the Electric Power Industry Reform Act (EPIRA). Then each time, the default solution has been coal plants as project sponsor-firms claim that this technology remains the cheaper, albeit not a cleaner option, if compared to gas-fired plants that could promise lower carbon emissions.
In the grand scheme, it’ll be intriguing to see if the future will prove that Czech billionaire Tykac’s play on stretching coal plant lifecycles will persist as a defining force in global energy mix— that in addition to his coal asset acquisitions fattening his bank account, the energy transition might still be clinging to coal like a stubborn old friend, powering economies long after it was supposed to have left the party.
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