Ministry of Energy (DOE) is considering exempting the first commercially developed nuclear power plant from a competitive selection process (CSP), citing the need to ensure the market for the plant capacity market.
“Authorized DUS (Distribution Utility) to ensure the existing capabilities of the first commercially developed nuclear power plant, which should be exempt from (must pass CSP)” the DOE circular said.
DUs can prioritize this capability, as long as they demonstrate the technical and financial capabilities of signing long-term purchasing power purchase agreements with nuclear power plants; provide a large enough consumption base; and have power shortages that can be alleviated by new base load generation.
The DOE notes that once priority allocation is filled, other DUs can still consume the capacity of the nuclear power plant.
The framework proposed by DOE to integrate nuclear energy into a first-generation mixture forms part of the 2023-2050 Philippines Energy Program Clean Energy Program (CES).
“It is necessary to establish a well-defined framework to instill potential investor interests in the Philippines’ first nuclear power generation facility while ensuring seamless and effective integration of nuclear energy in the power generation portfolio,” the DOE said.
By 2032, CES assumes at least 1,200 megawatts (MW) of commercially operated nuclear power plants, increasing to 2,600 megawatts by 2035 and by 2050.
“The commercial development of the Philippines Pioneer Nuclear Power Plant is an important milestone in the Philippines’ energy landscape, resulting in projected lower electricity costs and positive environmental impacts, making it a key player in achieving a low-carbon economy in the country,” the DOE said.
Pioneer projects are eligible for priority dispatch regardless of nuclear technology to be used.
Under the proposed framework, the DOE is tasked with finding financing and funding options, coordinating with the Nuclear Energy Programme-Inter-Agency Committee, Ministry of Finance, Ministry of Economics, Planning and Development, Maharlika Investment Corp. and other government agencies.
DOE will also plan with transmission network providers and system operators to ensure transmission capacity is provided during the delivery date of the first commercial nuclear power plant.
The Energy Regulatory Commission is also responsible for formulating rules and guidelines to determine the appropriate price setting plan applicable to nuclear power plants.
The U.S. Department of Energy said the Pioneer Factory will automatically be certified as a national energy project and will comply with Executive Order 30 and other DOE issuance rights and incentives.
“Integrating nuclear energy into the power generation composition is an innovative initiative that promises to stimulate local economies, create large numbers of jobs, attract investment and lead to the creation of new economic opportunities and economic growth,” the U.S. Department of Energy said. – Sheldeen Joy Talavera
