Most of the country’s major power players have expressed interest in developing nuclear power projects, Energy Secretary Sharon Garin said over the weekend.
Garin said while the Department of Energy (DOE) had not received formal proposals, companies were waiting for the DOE to finalize site selection and evaluation for the projects.
“They’re waiting for us, because all of these big companies… they all want to go nuclear they know this could be the possible solution for our baseload or for data centers,” Garin said.
She cited the Aboitiz Group, Manila Electric Co., GNPower, San Miguel Corp. and Prime Infrastructure Capital as examples of interested companies.
“They’re all interested whether small or big companies because everybody wants to explore nuclear,” Garin said, suggesting it is possible some developers would join forces.
The DOE has released a framework to integrate nuclear energy into the Philippines’ power generation mix, exempting the first commercially developed and operated nuclear power plant (NPP), designated as a Pioneer NPP, from the competitive selection process or bidding.
The Pioneer NPP will be treated as a baseload facility and given priority dispatch. The DOE said this will ensure a competitive investment environment and lower electricity rates when optimally blended with distribution utilities’ generation costs.
Distribution utilities will ensure a ready market for capacity from the Pioneer NPP and are exempt from conducting a competitive selection process (CSP) if compliant with regulations. Qualified utilities must show the technical and financial ability to enter into long-term power purchase agreements, serve a sufficiently large consumer base, and document supply deficiencies.
The pioneer NPP will be automatically certified as an energy project of national significance (EPNS), providing incentives and fast-track processing.
Garin also mentioned that the Maharlika Investment Corp. may invest in nuclear power, saying they “have enough funds naman eh or access to funds.” Nuclear financing is expected to be mainly private sector driven.
The DOE said it is waiting for the recommendation from a Korean feasibility study on the Bataan nuclear power plant and is exploring government participation models and financing options with other agencies, including the Department of Finance and the Maharlika. Grid readiness will also be prioritized. Flexible contracting mechanisms and a regulatory asset base (RAB)-type model or similar capital recovery mechanism with minimum contract terms of 25 years will be implemented to support long-term financial viability.
