Legal hurdles seen hindering Marcos’ nuclear energy push

The Marcos administration may need to clear legal hurdles first before taking major steps toward including nuclear energy in the Philippines’ energy mix, a report said.

In his first State of the Nation Address (Sona), President Marcos reiterated his intention to adopt nuclear energy, saying that he believes it was “time to re-examine” the country’s strategy toward building nuclear power plants in the Philippines.

“In the area of nuclear power, there have been new technologies developed that allow smaller scale modular nuclear plants and other derivations thereof,” he added.

Dutch financial giant ING Bank NV, however, said the country may need to pass amendments to existing legislation to allow more investments in nuclear power and even the possible revival of the mothballed Bataan Nuclear Power Plant (BNPP).

“Marcos ran on a platform that pushed for the development of renewable energy, but we will now need to see if he can sidestep the legal impediments to restarting the nuclear plant in the near term,” said Nicholas Mapa, ING senior economist in a report.

For one, power generation has been left mainly in the hands of the private sector, as provided by the Electric Power Industry Reform Act thus restricting government’s involvement.

Mapa noted, however, that adding nuclear energy to the country’s energy mix “appears to be timely” given skyrocketing fuel prices.

Coal-fired power plants are the backbone of the country’s power generation sector, accounting for almost half (43.4 percent) of total installed capacity while renewable energy plants including hydro and geothermal plants come next with a 29.4-percent share.

The BNPP, constructed during the term of the older Marcos’ administration in mid-1970s, was never operated due to safety concerns. The cost of refurbishing the nuclear facility was previously estimated at $1 billion.

Mr. Marcos earlier said the country would comply with the requirements set forth by the International Atomic Energy Agency (IAEA) for nuclear power plants which he said had been strengthened following the Fukushima nuclear disaster in 2011.

The IAEA is prescribing 19 requirements for countries seeking to embark on a nuclear power program.

Mr. Marcos’ predecessor Rodrigo Duterte issued Executive Order No. 164, which adopts a national position for a nuclear energy program. This is among the 19 milestones required by the IAEA.

“Since then, the spike in global energy prices has resulted in increased demand for the Philippines to shift to nuclear power,” the ING report said.