The Philippines Department of Energy (DOE) plans to grant pioneer incentives to the first private company to build a NPP, Energy Secretary Sharon S Garin said, speaking at the sidelines of the Philippine International Nuclear Supply Chain Forum. She said the DOE has issued a new circular that allows the first nuclear investor to bypass the usual competitive selection process (CSP) in order to fast-track development and ensure the initial project succeeds.
The CSP is a government-mandated bidding mechanism that requires distribution utilities and electric cooperatives to procure their power supply from generation companies offering the most cost-effective rates. It is designed to promote transparency and fair competition.
The DOE circular also directs TransCo and the National Grid Corporation of the Philippines (NGCP) to evaluate the grid’s readiness for integrating at least 600 MWe of nuclear capacity. Garin said ensuring grid stability is crucial in order to safely connect future nuclear plants to the national network.
The government has effectively waived the auction requirement for the first commercially developed NPP, allowing it to directly forge supply deals with distribution utilities, which are required to ensure a ready market for the available capacity of the pioneer NPP.
“It’s not just about the law, but about preparing all agencies, the academe, and manpower development,” she said. “When the time comes that a company applies for a licence to build, we’ll be ready.” She added that the Philippines aims to receive licence applications for nuclear facilities within the current administration, following passage of the Philippine Atomic Energy Regulatory Authority (PhilAtom) Act.
The government’s role is to create the environment and regulatory structure for private investors, since all generation in the Philippines is privatised. She said the DOE’s focus now is on capacity building, safety standards, and inter-agency coordination to prepare the country for its first nuclear application.
The DOE is also evaluating small modular reactors (SMRs), but Garin said there will be no deployment until international safety protocols are finalised, noting that the Philippines will follow global best practices before adopting the technology.
Garin is hoping for operation of the first NPP by 2032, citing supportive policies and strong investors’ interest, but stressed that community approval is the key for this to materialise. She said community acceptance and public consultations are among the major requirements for building a NPP. “We should not build in a community that does not want nuclear power… because that is their community. If they don’t want it there, then we cannot force them to accept it,” she told reporters on the sidelines of the Philippine International Nuclear Supply Chain Forum 2025.
Under the new framework, the first commercially developed and operated NPP will become the baseload facility and be granted priority dispatch in coordination with the DOE, the Independent Market Operator (IMO), and the System Operator (SO), regardless of the nuclear technology deployed. It will be automatically certified as an Energy Project of National Significance (EPNS), which gives it access to incentives and fast-track processing.
DOE said in a press release that its officials and those from the Department of Finance, Department of Economy, Planning, and Development (DEPDev), the Maharlika Investment Corporation, and other relevant agencies “will explore government participation models and financing options” within 90 days of the framework’s issuance.
“At the same time, grid readiness will be prioritised to ensure seamless integration of nuclear power into the transmission system,” it said. The Energy Regulatory Commission has also been tasked to coordinate with stakeholders to implement a Regulatory Asset Base-type model or similar capital recovery mechanism.
“By establishing clear rules for nuclear integration, we are giving confidence to investors, partners, and stakeholders that the Philippines is ready to responsibly and strategically adopt nuclear energy as part of its clean energy transition,” Garin said. “Nuclear will complement renewables by providing reliable, stable baseload capacity – ensuring that our economy has the energy security it needs to grow while meeting climate goals.”
