Philippines explores capital sources for nuclear energy

FILE PHOTO: Department of Energy (DOE) facade. Images from DOE / INQUIRER FILES

The Philippine government is taking decisive steps to realize the development of nuclear energy, as it has begun exploring funding options for potential nuclear assets.

The Department of Energy (DOE) said over the weekend that it pooled experts and representatives from the private and public sectors to discuss capital-raising mechanisms for such projects.

This was through the National Workshop on Nuclear Power Infrastructure and Financing held in Manila, from Oct 20 to Oct. 24.

Energy Undersecretary Giovanni Carlo Bacordo said the session would pave a way for “a clearer pathway forward.” The Marcos administration has set a goal of including nuclear power in the electricity generation mix beginning 2032.

Hurdles

According to the DOE, engaging with industry experts on drumrolling financing is critical. This, given the challenges posed in establishing nuclear power plants, such as hefty capital, long development timelines and a legal environment.

“The Philippines is taking a leap forward with the 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,” Bacordo said.

Brianna Lazerwitz, energy economist at the International Atomic Energy Agency (IAEA), said that a total of 31 countries are using nuclear energy. She said there are 416 nuclear power reactors in operation, with 63 more under construction.

Lazerwitz also noted a growing interest in more countries, with at least 32 new markets opting for nuclear energy.

“For the fifth year in a row, IAEA global nuclear electric capacity projections for 2050 have been revised upwards,” Lazerwitz said.

“In the high case scenario, nuclear electric capacity is set to rise by 160 percent or 992 gigawatts (GW), up from 377 GW at the end of 2024. Even in the low case, capacity is expected to grow by 50 percent to 561 GW globally,” she added.

The economist said that securing loans has been the way to go for most private power producers. But she called for “strong involvement” of the government to bankroll the expansion of nuclear energy.

Last September, Energy Secretary Sharon Garin said that the government may start entertaining applications for nuclear developments next year.