THE Department of Energy (DoE) said it is stepping up efforts to identify financing models that could support the Philippines’ entry into nuclear power, as the government seeks to balance energy security, climate goals, and investor risk.
“This marks another important step in our continuing efforts to explore the potential of nuclear power as a viable option in achieving energy security, economic development, and a sustainable future for the Philippines,” Energy Undersecretary Giovanni Carlo J. Bacordo said in a statement on Sunday.
The DoE said discussions with experts from the International Atomic Energy Agency (IAEA), private sector representatives, and government agencies were held from Oct. 20 to 24 in Manila under a national workshop on nuclear power infrastructure and financing. The event was organized by the Nuclear Energy Program Inter-Agency Committee (NEP-IAC) led by the DoE — the first such financing workshop conducted with the IAEA.
Mr. Bacordo said the Philippines is “taking a leap forward with discussions on financing like public-private partnerships, green financing, and other viable models that could help shape the future of nuclear energy for the Filipinos.”
He said these discussions aim to help potential proponents address the high upfront capital costs and long development timelines associated with nuclear projects.
The DoE said these efforts are supported by Republic Act No. 12305, or the Philippine National Nuclear Energy Safety Act, which provides a comprehensive legal foundation for the nuclear energy program and establishes the Philippine Atomic Energy Regulatory Authority (PhilATOM) as an independent, quasi-judicial regulator with exclusive jurisdiction over nuclear energy matters.
Under the Philippine Energy Plan, the government targets to integrate nuclear energy into the power mix with at least 1,200 megawatts (MW) of capacity by 2032, increasing to 2,400 MW by 2045 and 4,800 MW by 2050.
The department said financing nuclear energy projects presents a “unique set of challenges and opportunities,” given their high capital costs, long lead times, and complex regulatory environments.
These must be addressed as the country works to integrate nuclear energy into the power mix and attract investment into large-scale and small modular reactor projects.
The IAEA shared its “Milestones” approach to strategic planning for nuclear technology, highlighting the importance of government involvement in project financing and risk management.
“While various financing models exist such as lending or borrowing money, strong involvement of the government is essential, particularly with respect to financing structure and risk management,” IAEA energy economist Brianna Lazerwitz said.
She noted that 416 nuclear reactors are currently in operation worldwide and 63 more are under construction, as 17 countries expand their programs and 32 newcomers explore nuclear technology.
For the fifth straight year, the IAEA has revised its global nuclear electric capacity projections for 2050 upward. In its high-case scenario, capacity is expected to rise by 160% to 992 gigawatts (GW), up from 377 GW at the end of 2024, while even in the low-case scenario, it is projected to increase by 50% to 561 GW.
The workshop also tackled the country’s nuclear energy perspectives, the regulatory framework, institutional roles of the regulator and operator, and possible financing and ownership models for both large reactors and small modular reactors, the DoE said. — Sheldeen Joy Talavera
