The Critical Role of Nuclear Power For The Philippines
The development of nuclear power in the Philippines is a pressing national priority. With electricity rates among the highest in Southeast Asia, nuclear energy offers a reliable and cost-effective solution to the country's energy challenges. President Ferdinand Marcos Jr. has consistently advocated nuclear power as a way to provide affordable electricity to Filipino households and businesses. After decades of underspending on power infrastructure, the Philippines faces regular brownouts and an overreliance on imported fossil fuels. Nuclear plants can provide baseline power to support renewable sources like solar and wind.
Philippine Energy Landscape
The Philippines' economy has been experiencing rapid growth, with a GDP surge of over 7.5% in 2022 and an anticipated annual expansion exceeding 5%. This economic momentum is fueled by substantial investments in public infrastructure and private sector ventures, particularly in manufacturing and services, leading to a surge in domestic energy consumption. As the nation grapples with this growth, a pivotal point of contention arises—the escalating demand for power and the ensuing political discourse on how to address it.
The energy landscape in the Philippines is marked by a heavy reliance on coal-fired power generation, constituting 47% of the current energy mix, followed by natural gas (22%), renewable energy sources like hydro, geothermal, wind, and solar (24%), and oil-based resources (6.2%). The total energy capacity stands at 23GW, with the Malampaya gas field being a critical indigenous gas resource, providing the majority of gas-fired power generation. However, the impending depletion of the Malampaya field by 2024 raises significant concerns, intensifying debates on the future of the gas sector.
The nation faces an imminent energy crisis as the Malampaya gas fields, supplying 30% of Luzon's energy consumption, are expected to be depleted by 2024. This predicament is exacerbated by a growing population, an infrastructure boom mandated by the administration, and some of the highest electricity costs in Southeast Asia. Notably, the Philippines ranks among the highest in electricity prices per kilowatt-hour (kWh) in Southeast Asia, with a reported cost of Php 9.86 per kWh in January 2022, according to the Philippine Center for Investigative Journalism (PCIJ). For comparison, Singapore's electricity rate is slightly higher at Php 10.15/kWh, while Malaysia boasts the lowest price in the region at Php 1.42/kWh, underscoring the pressing challenges faced by the Philippines in navigating its energy future.
Philippine Energy Transition Plan
To address its soaring electricity demand, reduce imported fossil fuel dependence, and increase power supply resilience, the Philippines is considering nuclear power as part of its future energy mix. The ideas of pursuing nuclear energy for power generation is not new for the Philippines. Completed in 1984, the 623-megawatt (MW) Bataan Nuclear Power Plant (NPP) located in Luzon, was mothballed in 1986.
The Philippines, under the leadership of President Marcos, is undergoing significant changes in its energy landscape due to rising energy demands, costly electricity, and heavy dependence on coal imports. In response to these challenges, the Philippines is revising its energy roadmap, which extends up to 2050, to incorporate nuclear energy while simultaneously increasing its targets for renewable energy sources.
The revised energy roadmap, as outlined by the Department of Energy (DOE), introduces two distinct scenarios: the reference scenario and the clean energy scenario. The reference scenario builds upon existing renewable energy (RE) targets, while the clean energy scenario envisions a more diverse energy mix that includes nuclear energy, the transformation of coal facilities, and the retirement of some coal-powered plants. The DOE has already conducted the first public consultation of the Philippine Energy Plan (PEP) 2023 to 2050 to gather input and insights.
The clean energy scenario aims to significantly boost the proportion of renewable energy in the energy generation mix, targeting 35% by 2030, 50% by 2040, and more than 50% by 2050. It also includes two options for offshore wind energy development, with one offering a capacity of 19 gigawatts (GW) by 2050 and the other a higher capacity of 50 GW by the same year. Additionally, the plan is to establish eight 150 MW small modular reactors (SMR) by 2032, with an additional 1,200 MW of nuclear capacity by 2035 and 4,800 MW by 2050.
The Philippine Progress Toward Nuclear Energy
Advanced nuclear reactors, such as Small Modular Reactors (SMRs) and Micro Modular Reactors (MMRs), have garnered considerable interest for potential deployment within the country. This interest is driven by the perceived safety and scalability of nuclear energy, especially given the archipelagic landscape of the Philippines. Major private utility companies, including Meralco and Aboitiz, have become actively involved in the discourse, indicating a substantial commitment to this emerging technology.
In a noteworthy development in November 2023, Meralco and USNC recently formalized a cooperative agreement in November to assess the feasibility of deploying one or more MMRs in the Philippines. This collaborative effort aims to explore various aspects, including environmental and social impacts, technical requirements, site suitability, and commercial viability. The potential sites identified for these reactors include Talim Island in Rizal, San Rafael in Bulacan, and Isla del Provisor located across from Malacañang Palace.
While the prioritization of advanced nuclear technology highlights its significance for the Philippines, concerns arise from the fact that, according to our last discussion with Dr. Carlo Arcilla of the Philippines Nuclear Research Institute (PNRI), no commercially proven SMR designs currently exist. This poses a potential challenge, as the law prohibits the purchase or licensing of unproven nuclear technology — a limitation that may impact the future of SMRs and MMRs, which are still in the demonstration phase.
Dr. Arcilla also emphasizes a crucial legislative development – the proposed Philippine National Nuclear Energy Safety Act, which has passed the lower house of Congress. This legislation aims to establish the Philippine Atomic Energy Regulatory Authority (PhilATOM), responsible for formulating national policies guiding regulations and standards for nuclear energy projects. The existence of such a regulator is seen as vital by private power companies, signaling the government's commitment to facilitating nuclear power development. With potential support in the Senate, this legislation could pass within 1-2 years, indicating a proactive approach to establishing an independent regulatory body.
Nuclear Power as a Reliable Domestic Energy Source
The development of nuclear power in the Philippines is a pressing national priority. With electricity rates among the highest in Southeast Asia, nuclear energy offers a reliable and cost-effective solution to the country's energy challenges. President Ferdinand Marcos Jr. has consistently advocated nuclear power as a way to provide affordable electricity to Filipino households and businesses. After decades of underspending on power infrastructure, the Philippines faces regular brownouts and an overreliance on imported fossil fuels. Nuclear plants can provide baseline power to supplement renewable sources like solar and wind.
The economic advantages and environmental benefits associated with nuclear power make it a compelling choice for the Philippines as it aspires towards energy independence. By making judicious, long-term investments in nuclear power, the nation can not only address its immediate energy needs but also position itself for an energy surplus. This surplus, in turn, has the potential to catalyze job creation and foster sustained economic growth over the years.
In essence, the confluence of economic viability, environmental sustainability, and international collaboration makes the present moment opportune for the Philippines to embark on a strategic and comprehensive pursuit of nuclear energy. As the country charts its course towards a more secure energy future, the integration of nuclear power emerges not just as an option but as a timely imperative.
