THE Department of Energy (DoE) is looking into exempting the first commercially developed nuclear power plant from the competitive selection process (CSP), citing the need to ensure a market for the plant’s capacity.
“DUs (distribution utilities) are mandated to ensure a ready market for available capacities from the first commercially developed nuclear power plant, which shall be exempt from (having to go through CSP),” according to a DoE draft circular.
DUs may apply for priority access to the capacity, provided that they demonstrate both technical and financial capacity to enter into long-term power purchase agreements with the nuclear power plant; serve a sufficiently large consumer base; and have power supply shortages that could be alleviated by new baseload generation.
The DoE noted that other DUs can still tap nuclear plant capacity once the priority allocations are filled.
The DoE’s proposed framework for the integration of nuclear energy in the generation mix forms part of the Clean Energy Scenario (CES) of the Philippine Energy Plan 2023-2050.
“There is a need to establish a well-defined framework to instill potential investor interest for the first nuclear power generation facility in the Philippines, while at the same time ensuring a seamless and efficient integration of nuclear energy in the power generation mix,” the DoE said.
The CES assumes commercially operational nuclear plants by 2032 with at least 1,200 megawatts (MW), increasing to 2,600 MW by 2035 and 4,800 MW by 2050.
“The commercial development of the pioneer nuclear power plant in the Philippines represents a significant milestone in the Philippine energy landscape, resulting in anticipated lowering of electricity costs, and a positive major environmental impact, making it a key player in the country’s commitment to achieving a low-carbon economy,” the DoE said.
Pioneer projects are eligible for priority dispatch regardless of the nuclear technology to be employed.
Under the proposed framework, the DoE is tasked with looking for options for financing and funding, in coordination with the Nuclear Energy Program – Inter-Agency Committee, Department of Finance, Department of Economy, Planning, and Development, the Maharlika Investment Corp., and other government agencies.
The DoE will also plan with the transmission network provider and system operator to ensure the availability of transmission capacity within the delivery date of the first commercial nuclear plant.
The Energy Regulatory Commission is also tasked with formulating the rules and guidelines to determine the appropriate price-setting scheme applicable for the nuclear plant.
The DoE said that the pioneer plant will be automatically certified as an energy project of national significance, entitling it to the rights and incentives outlined in Executive Order No. 30 and other DoE issuances.
“The integration of nuclear energy into the power generation mix represents an innovative initiative, which is poised to stimulate local economies, create significant employment opportunities, attract investment, and lead to the creation of new economic opportunities and economic growth,” the DoE said. — Sheldeen Joy Talavera