PPP pushed for nuclear energy integration in Philippines

MANILA, Philippines — Public-private partnerships are being pushed for the successful integration of nuclear energy in the country’s power mix.

Speaking at the APEC Business Advisory Council (ABAC) forum yesterday, Aboitiz Group president and CEO Sabin Aboitiz, who is also a member of ABAC Philippines and vice chair of the ABAC Sustainable Growth Working Group, said private sector innovation and capital, coupled with public sector regulatory support and risk management, could drive the growth of nuclear energy.

“We understand that the adoption of advanced technologies like small modular reactors (SMRs) is not without its challenges. We need to learn from each other, share best practices, and promote their safe and effective deployment,” Aboitiz said.

“Each country or corporation’s success can then illuminate the path for others. This is where the importance of private-public partnerships comes into play,” he said.

Aboitiz said governments could create enabling policies such as regulatory streamlining, transition financing, loan guarantees, and market-based incentives that promote nuclear energy and SMRs.

He said businesses, meanwhile, could provide technical expertise, manage projects effectively, and ensure that they deliver on time and on budget.

“The energy transformation we seek will not be easy, but it is essential for a sustainable future. The role of nuclear energy will be pivotal in this journey,” Aboitiz said.

“It calls for shared learning, private-public partnerships, and an imaginative exploration of new technologies and what they can do,” he said.

Energy Secretary Raphael Lotilla said the agency is committed to work toward a sustainable future through a technology approach to clean alternative energy sources, which involves diversification of the country’s energy sources to include nuclear power.

“On the part of our government, there is a need of course to share these ideas on how the regulatory space is going to be carried out,” Lotilla said in the same forum.

“The role of the private sector and synergies with government would need to be worked out well,” he said.

Lotilla said the Department of Energy (DOE) is working with the National Economic and Development Authority on the enabling policy framework for private sector participation in the nuclear power space.

He said Congress is also working on the legal and regulatory framework for nuclear power.

“With all these significant undertakings, rest assured that the Department of Energy of the Philippines will participate and initiate the Nuclear Energy and Emerging Technologies Program towards further enrichment in terms of the technical capacities and capabilities that form part of the programs,” Lotilla said.

“For nuclear, the deliverables of all the efforts shall form part of the finalization of our road map for completion this year,” the energy chief said.

The DOE is expected to include nuclear energy in the new Philippine Energy Plan that is expected to come out in September.

Lotilla said tapping nuclear energy is a long-term fuel option for power generation given its technical and economic viability.

“In developing nuclear power for application, we continue to implement plans and programs to satisfy the competency requirements based on the milestone approach of the International Atomic Energy Agency,” he said.

Aboitiz Power Corp. president and CEO Manny Rubio said the company is considering nuclear technology as an option in the future, particularly SMRs.

“As far as AboitizPower is concerned, we are in discussions with three proponents of nuclear technology, particularly SMRs,” Rubio said.

“These discussions that we have with proponents of SMRs is happening. We’re progressing. We’re quite excited about the developments. Although the costs are still high, but as they build more of these and as they get to have more experience and economies of scale, we will see costs going down,” he said.

With the appropriate safety measures in place, the Aboitiz Group sees nuclear energy as not just a clean energy source but also a reliable one.

Unaffected by the vagaries of weather or geographical constraints, it is seen providing an effective baseload power source in a diverse and resilient energy mix.

“If there’s one area where public-private partnership will work in, it’s on nuclear technology, particularly on us working with the government to ensure addressing social issues,” Rubio said.

“As you know, nuclear energy is actually one of the most misunderstood technologies out there. The negative perceptions are quite significant based on events in other countries and probably the stigma of the Bataan nuclear power plant,” he said.