The Department of Energy (DOE) has released a draft circular outlining a framework for integrating nuclear energy into the Philippines’ power generation mix to implement the clean energy scenario (CES) under the Philippine Energy Plan 2023-2050.
The CES envisions a more diverse energy mix, with nuclear energy entering in phases. The plan targets 1,200 megawatts (MW) of nuclear capacity by 2032, increasing to 2,600 MW by 2035 and 4,800 MW by 2050.
The DOE said a well-defined framework is crucial to attract investor interest in the first nuclear power generation facility and ensure its smooth integration into the power grid.
Under the draft policy, the first commercially-developed and operated nuclear power plant in the Philippines will be designated a “pioneer project.” This classification aims to provide a favorable and competitive environment to encourage further development in the country’s energy sector.
“The pioneer NPP shall be considered a baseload plant and shall be granted priority dispatch, in coordination with the DOE and the system operator, regardless of the nuclear technology to be considered for development,” the draft circular says.
The circular suggests that the commercial operation of a nuclear power plant, when optimally blended with the generation costs of distribution utilities (DUs), could effectively lower electricity rates.
“Thus, DUs are mandated to ensure a ready market for available capacities from the first commercially developed NPP, which shall be exempt from the conduct of Competitive Selection Process (CSP): Provided, That DUs are compliant with the provisions of the EPIRA and this Circular. Further, DUs that meet either or all of these qualifications can apply for prioritization,” the draft circular reads.
The DOE also said it would explore the government’s role in the pioneer nuclear power project within 90 days of the circular’s issuance.
This includes studying financing and funding options in coordination with the Nuclear Energy Program-Interagency Committee (NEP-IAC), Department of Finance (DOF), Department of Economy, Planning, and Development (DEPDev), Maharlika Investment Corp. and other relevant government agencies.
The DOE said integrating nuclear energy into the power generation mix is an innovative initiative expected to stimulate local economies, create employment opportunities, attract investment, and foster new economic growth.
