Empowering Nuclear Energy Growth in ASEAN: A Unified Effort by Policymakers, Industry Leaders and Public
As ASEAN countries grapple with the twin challenges of climate change and energy demand, nuclear power is garnering renewed interest. Over the past 15 years, the energy demand within this region has surged by an astonishing 60%, as reported by the International Energy Agency (IEA). This surge has primarily been met through the importation of fossil fuels, which now account for over 90% of the increased energy consumption. The region's ambitious trajectory places it on track to secure the fourth spot in the global economic ranking by 2030.
Nuclear energy provides reliable baseload electricity without carbon emissions. However, high upfront capital costs, concerns about safety, and unresolved issues around nuclear waste have hampered growth in the nuclear industry in many places. With coordinated action across the public and private sectors, nuclear power has the potential to play an expanded role in decarbonizing electricity systems around the world. Unlocking nuclear's promise will require facing its challenges head-on through policies that enable innovation and clear, honest communication about its risks and benefits. If nuclear is to fulfill its critical role in a carbon-constrained world, stakeholders must work together to create a more supportive environment for its deployment.
Nuclear Energy Development in ASEAN
Indonesia and the Philippines are currently the ASEAN member states that are actively exploring the nuclear energy option. But it might be possible for a country like Malaysia and Vietnam to revisit nuclear energy into their energy mix , as they have robust nuclear energy programs. And additional other AMS might want to explore nuclear energy in the future.
Indonesia and the Philippines have recently embarked on ambitious programs to establish nuclear power. Both countries have successfully completed Phase 1 of the Integrated Nuclear Infrastructure Review (INIR) assessment in 2009 and 2018 respectively. Indonesia is prepared for Phase 2 in 16 out of 19 nuclear infrastructure elements, with measures to address the remaining aspects underway, while the Philippines is working to overcome nine challenges identified by the 2018 INIR assessment.
Indonesia in its Energy Sector Roadmap Towards Net Zero Emission 2060, plans to develop a nuclear power plant by 2039. In parallel, the Philippines is bolstering its nuclear program in response to escalating energy needs, expensive electricity, and a heavy reliance on coal imports. The Philippine Department of Energy (DOE) proposes a strategic energy plan envisioning the establishment with 1,200 megawatts (MW) of capacity planned by 2032, 2,400 MW by 2035, and 4,800 MW by 2050.
There has been growing interest lately in enabling nuclear energy across the ASEAN region, especially among utility companies looking to decarbonize. This is attracting international vendors to form partnerships in the area. For example the Indonesian state-owned firm Pupuk Kalimantan Timur (PKT), which is collaborating with several Danish companies, including Copenhagen Atomics and Topsoe, to explore green ammonia production using SMRs. Their goal is to establish a $4 billion facility that generates 1 million tonnes of carbon-free ammonia per annum, employing green hydrogen from water electrolysis instead of traditional fossil fuels. Meanwhile, NuScale, a U.S. SMR company is discussing the potential deployment of its technology with both the Indonesian and Philippine governments. Further U.S. involvement includes ThorCon's push into the Indonesian market, recently signing an agreement with Indonesia's Nuclear Energy Regulatory Agency to initiate preparations for licensing a 500 MWe ThorCon molten salt reactor. On another front, Russia's Rosatom is reportedly in talks with Indonesia for the construction of a floating nuclear power plant.
Moreover, utility companies like The Manila Electric Co. (Meralco) and Aboitiz Group in the Philippines are at the forefront of these efforts. They view nuclear energy as a vital component of their sustainability strategies, with Meralco actively pursuing the development of a pilot nuclear plant. These endeavors underscore the crucial role of the private sector in shaping the nuclear energy landscape.
Why Collaboration Matters: Policymakers, Industry, and the Public Support
One commonly cited issue against nuclear technology is the high capital costs and construction times of nuclear reactors. While nuclear power plants historically took up to a decade to construct, it's important to recognize that the nuclear industry has evolved. With the adoption of Generation III+ technology, which is standardised and cost-effective, modern nuclear power plants can be completed and operational within an average of 86 months, a significant improvement from the previous 120-month timeline. Furthermore, the use of small modular nuclear power plants can reduce construction time to as little as 2–3 years.
Addressing the financing challenge is crucial for the success of nuclear energy projects. Historically, a lack of financing has led to the delay or cancellation of nuclear power projects. However, solutions exist, and more than 500 nuclear power reactors have been successfully financed and built to date. Examples of financing schemes include government-to-government agreements, such as South Korea with the United Arab Emirates and Pakistan with China, as well as public-private partnership (PPP), like the British government partnering with the Rolls Royce company and the Estonia government with Fermi Energia.
Policy makers play a crucial role in accelerating the construction of nuclear power plants and fostering innovation. Policy makers are the architects of the regulatory landscape that governs the implementation and operation of nuclear energy programs. Their primary role lies in establishing clear, transparent, and forward-looking nuclear energy policies. These policies should encompass various facets of nuclear energy, from safety standards and waste management to financing and international cooperation. To attract investors, policy makers can offer financial incentives, such as tax breaks and subsidies for nuclear energy projects. Additionally, long-term financing mechanisms and insurance schemes should be in place to mitigate the perceived financial risks associated with nuclear energy investments. Incentives and acceleration programs can boost the use of low-emission energy sources. Taking inspiration from countries like France, the UK, Ukraine, Japan, South Korea,China, and the United States, which have embarked on developing new nuclear power plants or restarting existing ones.
Furthermore, the desire of major corporations and utilities in Indonesia and the Philippines to incorporate nuclear energy is likely to significantly influence the nuclear development roadmap of these countries. In order to facilitate deployment by the late 2035 or sooner, both nations will need to update their legal and regulatory frameworks and invest in the necessary infrastructure and human capital. Policymakers may consider pursuing public-private partnerships, foreign technology transfer, and knowledge sharing to expedite the deployment of nuclear technology for commercial purposes. While concerns regarding social and environmental impacts persist, the growing commercial interest is giving momentum to nuclear power's role in ASEAN's low-carbon transition.
The role of public support is equally crucial in fostering the growth of nuclear energy across ASEAN. Despite the commercial interest, there remains a degree of public apprehension regarding nuclear safety and waste disposal. Positive government engagement and educational efforts focused on nuclear technology and its benefits for sustainable growth will be pivotal in gaining community support. Regional coordination on regulatory standards and the adoption of best practices for public communication about nuclear energy can help bolster public confidence in its reliability and contribution to decarbonization. With a well-informed and supportive public, the path for private and state nuclear projects can become more streamlined throughout the region. Therefore, public outreach and engagement initiatives should be integrated into broader commercial nuclear development plans across ASEAN.
