Gov’t plots nuke funding strategy
‘The Philippines is taking a leap forward with the discussions on financing like public-private partnerships, green financing and other viable models that could help shape the future of nuclear energy for the Filipinos.’
Energy Secretary Sharon Garin hands Asia Economic Development Committee of South Korea chairperson Yoon Sukhun a plaque of appreciation after a knowledge-sharing meeting on the use of clean energy, including nuclear power.
Photograph courtesy of DoE
The Department of Energy is developing a national strategy to secure financing for potential nuclear energy projects to attract the investments needed to make atomic power a viable, long-term source of low-carbon energy amid a projected global surge in nuclear capacity.
Energy Undersecretary Giovanni Carlo J. Bacordo, over the weekend, said financing nuclear projects could involve public-private partnerships, green financing, and other innovative models.
“The Philippines is taking a leap forward with the discussions on financing like public-private partnerships, green financing and other viable models that could help shape the future of nuclear energy for the Filipinos,” Bacordo said.
Nuclear energy projects, including large reactors and small modular reactors, present complex financing challenges due to high upfront costs, long development timelines, and the need for careful risk management.
International Atomic Energy Agency (IAEA) energy economist Brianna Lazerwitz said strong government involvement is critical, particularly in shaping financing structures and managing the risks associated with nuclear development.
“There are 416 nuclear power reactors currently in operation worldwide, and 63 more under construction,” Lazerwitz said, noting that nuclear energy is expanding in 17 countries, while 32 others are newcomers.
For the fifth consecutive year, the IAEA has revised its global nuclear electric capacity projections for 2050 upward.
In a high-case scenario, capacity could surge by 160 percent to 992 gigawatts (GW) from 377 GW at the end of 2024, while even the low-case projection anticipates a 50 percent increase to 561 GW worldwide.
Under the Philippine Energy Plan, the country targets to develop at least 4,800 megawatts of nuclear power capacity by 2050.
To support this goal, Republic Act 12305, or the Philippine National Nuclear Energy Safety Act, established the Philippine Atomic Energy Regulatory Authority to oversee nuclear regulation.
The Department of Energy described the law as providing a comprehensive and robust legal framework for advancing the country’s nuclear energy program.