SUSTAINABILITY think tank Center for Energy, Ecology, and Development (CEED) expressed alarm over the draft circular from the Department of Energy (DOE), which outlines a framework for integrating nuclear energy into the country’s power generation mix.
Earlier this week, the DOE released a draft circular that aims to integrate nuclear energy into the country’s power generation mix.
CEED said in a statement on Wednesday that among the most alarming provisions of the draft is the exemption of the country’s first nuclear power plant from the conduct of competitive selection process (CSP).
Under CSP, a distribution utility (DU) may only sign a power supply agreement with a generation company after calling for and receiving at least two qualified bids. It will only be allowed to have direct negotiations with other power suppliers after at least two failed bidding procedures.
The CSP was mandated by the government to ensure least-cost power procurement from DUs.
“The CSP was mandated to ensure the least cost power for consumers, and also to ensure transparency and accountability. By exempting nuclear power from this process, the DOE is setting a dangerous precedent where high-risk projects can be pushed forward without due diligence or the best interests of consumers in mind,” Gerry Arances, CEED executive director, said.
Arances also cited fears on the possible environmental risk from nuclear energy, especially since the Philippines is “highly vulnerable to natural disasters.”
“Meanwhile, the Philippines is rich in renewable energy resources, with an estimated potential of around 1,200 gigawatts. Rather than investing in high-risk technologies like nuclear power, the country would benefit more from accelerating the development of clean, safe, and indigenous energy systems,” Arances added.
He said a full and just transition to renewables can address the country’s energy needs while protecting communities, the environment, and future generations, without the need to gamble on dangerous and expensive technologies.
The draft circular provided by the DOE earlier this week seeks to allow the commercial development and operation of a nuclear power plant, including small modular reactors (SMR), micro-modular reactors (MMR) and floating nuclear power plants.
MMR units are those with capacities of up to 10 megawatts (MW) while SMR units are those with power output of up to 300 MW.
Earlier this month, Congress ratified the Philippine National Nuclear Energy Safety Act that created the Philippine Atomic Energy Regulatory Authority, serving as a regulatory body to ensure safety, security, and safeguards on the peaceful use of nuclear energy throughout the country.
By coming up with the draft policy, the DOE said it wanted to attract investor interest in nuclear development and the business opportunities arising from it.
However, no definite time frame was given for its approval.
The DOE document added that as part of the integration of nuclear power into the country’s energy mix, the construction, enhancement and advanced planning of the current transmission lines and facilities will be needed.
It also stated that the first commercially developed and operated nuclear power plant in the Philippines shall be considered a pioneer project and must be provided with a conducive and competitive environment to stir further development in the energy landscape.
The DOE also wants the pioneer nuclear power plant to be considered a baseload plant that runs 24/7 and granted priority dispatch in the market, regardless of the nuclear technology to be considered for development.
Among local power companies that earlier expressed interest in developing nuclear power projects were Meralco Power Gen Corp. and Aboitiz Power Corp.
