First Gen mulls over going into nuke power

MANILA, Philippines – Lopez-led First Gen Corp. is exploring the possibility of joining in the looming nuclear energy race in the Philippines. First Gen vice president Jay Joel Soriano said they have looked at nuclear energy as well.

“I think when we looked at it, it’s almost unavoidable that we have to consider nuclear within our energy mix,” Soriano said, who is also the firm’s head of strategy and planning.

READ: DOE readies perks for nuclear power producers

He said this at a forum organized by the Philippine Institute for Development Studies on Wednesday. Soriano said the group, with its focus now more heavy on clean energy, was “keeping an eye” on developments in foreign markets.

“We’re particularly interested in finding an organization or a company that’s been able to make it commercially viable,” he told reporters following the event in Pasay City. First Gen is especially looking at small modular reactors, which have capacities ranging from 300 megawatts (MW) to 450 MW.

“If they’ve declared commercial operations, I think that’s the time when we can actively seek a dialogue to see whether it’s something we can bring into the country,” he added.

But Soriano clarified that there were no solid talks or discussions yet with potential partners, although they had conversations with prospects in the United States.

President Ferdinand Marcos Jr.’s dream of having the first nuclear-generated electricity may not arrive until 2038, much later than his target of 2032.

READ: Philippines explores capital sources for nuclear energy

Based on draft guidelines crafted by the Department of Energy (DOE), the Philippines’ pioneer nuclear power plant would follow a 10-year staggered delivery program, which would not begin until 2038.

The draft terms give potential players the opportunity to prepare the requirements and get a better understanding of the needed capacity allocation, pricing, settlement, contracting, site identification, obligations, and safety, to name a few.

DOE Secretary Sharon Garin said last week that the agency had been exploring some perks to entice more participants in the planned nuclear market. She did not provide further details, but noted these would help recover their investments.

READ: Southeast Asia revisits old plans on nuke energy

Meanwhile, another notable point in the draft guidelines is the possibility of the government acquiring up to 10 percent of the equity or economic interest in the first nuclear project.

If approved, the Philippine National Oil Co. (PNOC), Maharlika Investment Corp., or another government entity may get a share of the nuclear development “subject to negotiation, due diligence, applicable laws, corporate and regulatory approvals and fiscal rules.”

Maharlika manages the country’s sovereign wealth fund, while PNOC is tasked with exploring and developing energy sources. INQ