energy self-reliance(2)

After that brief critique of Dr. Viray’s review of Geronimo Velasco’s book, I’ve decided to write more on energy self-reliance. This time it’s coal.

Back in 1993 when I attended some discussions on the further lifting of quantitative restrictions and the lowering of tariffs for coal, the spokesmen for the local coal industry, as expected, presented the local industry as a champion of its workers. In diplomatic language, I would point out that local coal workers actually were not only underpaid but also faced very hazardous working conditions. Suffice it to say that coal mine explosions were not rare, especially in Cebu mines controlled by a northern warlord. How diplomatic could one be in saying such arguments were shameless.

The other argument was energy security. In a paper I wrote for an NGO (Alternative Forum for Research in Mindanao) also in 1993, on the Apo geothermal development where I looked at the comparative air pollution impacts of the power options for Mindanao and the country, I argued that we could always close local coal mines but make provisions for reopening them when the need arose. That was because, at the time, the tariff protection for the industry was so high and was more than sufficient to make local coal workers rich and also to substantially lower costs for the coal plants at the time. The paper’s assertions were supported with calculations using data from the NPC itself.

Perhaps nowadays, local coal may have improved its position vis-avis imported coal because of some simple technological developments and the rising price of crude oil, but I think the arguments I made are still relevant.