DOE, US to ink agreement on nuclear cooperation

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The Philippines will sign with the United States next month a cooperation agreement on the use of nuclear energy for power production in the country next month, according to the Department of Energy (DOE).

“We’re pushing for the inclusion of SMR (small modular reactors) in our energy mix and we have already prepared all the frameworks and all we need now is to get the approval of the President to have it in our energy mix. In fact, I’m going to the US, I think first week of March, to sign a cooperation on nuclear energy,” said Energy Secretary Alfonso Cusi during a virtual economic briefing hosted by the Philippine Embassy in Washington last Thursday.

Cusi said the use of SMR is being pursued in the country as it can help in the development of island provinces given the technology’s low logistics cost, while improving electricity supply reliability in far-flung locations.

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The Office of the President is yet to approve the national position on a nuclear energy program that was crafted by the Nuclear Energy Program Inter-Agency Committee, which was mandated by Executive Order No. 116 to conduct a study on the matter.

DOE said provinces such as Palawan, Cagayan and Sulu have expressed their openness to the development of SMR utilizing nuclear technology in their areas.

Apart from cooperation in nuclear energy, Cusi said American firms can also consider investing in geothermal power plants in the Philippines.

“There are other things that we’ve been doing to improve our energy security… We are inviting American investors or US investors to come and invest in geothermal, which we are offering for 100 percent foreign participation,” Cusi further said.

In 2020, the Philippines allowed 100 percent foreign ownership for geothermal exploration, development and utilization projects, with an initial investment cost of about $50 million capitalization through Financial and Technical Assistance Agreements (FTAAs).

FTAAs may be entered into between foreign contractors and the Philippine government for the large-scale exploration, development and utilization of natural resources. These are signed by the President.

As of end-2020, the total installed capacity of geothermal projects in the Philippines reached 1,928 megawatts equivalent to 7 percent of the power mix, with total power production at 10,757 gigawatt hours or almost 11 percent of the entire power produced in the country. – Jed Macapagal

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