Philippines advances nuclear power tender framework

Country is targeting 1,200MW of nuclear capacity by 2032.

The Department of Energy (DOE) is advancing rules for the competitive procurement of the Philippines’ first nuclear generation capacity.

The government plans to introduce nuclear power into the country’s generation mix from 2032, starting with 1,200 megawatts (MW) of capacity. The target is to increase nuclear capacity to 2,400MW by 2035 and 4,800MW by 2050.

At a public consultation on 25 September, DOE Director Patrick T. Aquino presented revisions to the proposed Department Circular on guidelines for nuclear generation capacity tenders for the first and succeeding nuclear power plants.

The revised draft incorporates feedback from the first stakeholder consultation, including submissions from the National Grid Corporation of the Philippines, Meralco, and other industry participants.

The revisions cover grid readiness, project delivery schedules, regulatory approvals, and pricing requirements.

Under the proposal, preliminary grid feasibility would be considered when determining the capacity offered in each tender. Bid requirements would also cover substations, connection points, transmission requirements, and grid synchronisation.

The DOE proposes procuring nuclear capacity in stages, with delivery schedules taking into account site development, technology, financing, licensing, and grid readiness. Construction timelines would depend on the nuclear technology and the winning bidder’s approved proposal.

Winning a tender would not authorise the construction or operation of a nuclear facility. Projects would require authorisation from the Philippine Atomic Energy Regulatory Authority (PhilATOM), as well as other applicable permits and approvals.

PhilATOM would oversee nuclear safety and regulatory matters covering siting, construction, commissioning, and operation. The DOE would administer the competitive procurement of generation capacity.

The draft also sets parameters for price offers. Bids above the applicable tender price or price ceiling could be disqualified under the tender terms and regulations.

The Energy Regulatory Commission would determine the price threshold, reserve price, tariff range, or pricing methodology for each tender round.
The proposed Circular remains under consultation. The DOE will evaluate feedback from the second consultation before finalising the guidelines.