DOE pushes competitive framework for nuclear power procurement

As the Philippines moves to include nuclear power in its energy mix, the Department of Energy (DOE) is pushing for a competitive procurement framework focused on strict grid readiness, staged delivery schedules, and rigorous pricing parameters.

In a statement on Tuesday, the DOE said Patrick Aquino, head of the technical secretariat of the Nuclear Energy Program Inter-Agency Committee (NEP-IAC), presented the proposed guidelines during the second public consultation held at the DOE Auditorium in Bonifacio Global City, Taguig, last week.

Under the proposed competitive procurement process, bidders would be required to conduct preliminary grid feasibility assessments and identify substations, connection points, and transmission requirements to ensure seamless and safe integration of nuclear power into the country's electricity system.

The framework would also adopt a staged procurement model, with construction and delivery schedules aligned with the selected nuclear technology, site development requirements, financing capabilities, licensing milestones, and grid readiness, the DOE said.

Winning a tender would grant a project capacity selection rights but would not constitute authorization to build or operate a nuclear facility.

The DOE said construction and other regulated activities could only proceed after the project secures the necessary permits from the Philippine Atomic Energy Regulatory Authority (PAEARA), which has jurisdiction over nuclear safety, site selection, commissioning, and operations.

The procurement process would also include strict pricing controls. The Energy Regulatory Commission (ERC) would establish price thresholds, reserve prices, tariff ranges, and pricing methodologies, with bids exceeding the prescribed price ceiling subject to automatic disqualification.

The DOE said the proposed framework supports the government's target of adding nuclear power to the country's generation mix, starting with 1,200 megawatts (MW) in 2032, increasing to 2,400 MW by 2035, and reaching 4,800 MW by 2050.

The Energy Department said it is evaluating additional inputs from stakeholders gathered during the latest public consultation, including industry players Meralco and the National Grid Corporation of the Philippines (NGCP), before finalizing the department circular. — VBL, GMA News