Philippines to exempt pioneer nuclear plant from bidding

The Department of Energy will exempt the first commercially developed and operated nuclear power plant (NPP) in the Philippines from the competitive selection process (CSP) or bidding, releasing a comprehensive framework for integrating nuclear energy into the country’s power generation mix.

The DOE said the so-called Pioneer NPP would be treated as a baseload facility and granted priority dispatch in coordination with the DOE, the independent market operator (IMO) and the System Operator (SO), regardless of the nuclear technology deployed.

The policy, outlined in Department Circular (DC) No. 2005-10-0019, formally established the foundations for the first commercial NPP to enhance the country’s long-term energy security and potentially lower electricity rates when blended with the generation cost of distribution utilities (DUs).

“This is more than just a policy document, it is an investment signal,” said Energy Secretary Sharon Garin, who signed the circular on Oct. 2, 2025.

“By establishing clear rules for nuclear integration, we are giving confidence to investors, partners, and stakeholders that the Philippines is ready to responsibly and strategically adopt nuclear energy as part of its clean energy transition,” she said.

Garin said the Pioneer NPP would serve as a cornerstone project, diversifying the energy mix and creating a robust framework attractive to both local and international investors.

The circular mandates that distribution utilities ensure a ready market for available capacities from the first commercially developed NPP, provided they comply with the Electric Power Industry Reform Act of 2001 and the circular’s provisions.

DUs that demonstrate technical and financial capability to enter into long-term power purchase agreements with an NPP, serve a sufficiently large consumer base and show documented supply deficiencies may apply for prioritization for the capacity supply.

Grid readiness will be prioritized to ensure seamless integration of nuclear power into the transmission system. To support long-term financial viability, flexible contracting mechanisms such as auctions, direct contracting or aggregation for industrial and economic zone use will be introduced.

In parallel, the Energy Regulatory Commission (ERC) will implement a Regulatory Asset Base (RAB)-type model or a similar capital recovery mechanism, anchored on minimum contract terms of 25 years, which are extendable for another 25 years.

The pioneer NPP will also be automatically certified as an Energy Project of National Significance (EPNS), giving it access to incentives and fast-track processing.

Within 90 days of the circular’s issuance, the DOE will explore government participation models and financing options in collaboration with the Department of Finance, Department of Economy, Planning and Development, the Maharlika Investment Corp. and other relevant agencies.

The circular will take effect 15 days upon its publication in a newspaper of general circulation or in the Official Gazette.