The Nuclear Option: A Vision For The Philippines' Nuclear Energy Program

In a recent discussion on the future of the Philippine energy landscape, Felino Bernardo, Head of Energy Transition Projects at Aboitiz Power Corporation (AboitizPower), emphasized the critical importance of safety in the development of the country's nuclear program.

With the Philippines forging ahead in its nuclear energy program, prioritizing safety, affordability, and environmental impact becomes imperative.| Illustrator: Ask

Speaking at the second Ruperto P. Alonzo Memorial Lecture titled "The Nuclear Option" held at the University of the Philippines School of Economics, Bernardo underscored the need for nuclear energy to be not only safe but also reliable and affordable.

"Number one, nuclear energy has to be safe, full stop. At the same time, it has to be reliable and affordable," Bernardo stated, highlighting the fundamental principles guiding the nuclear program's development.

He noted that the lifespan of a nuclear power plant, which can range from 40 to 60 years, significantly influences its levelized cost of electricity (LCOE), a key metric in determining economic viability.

Bernardo explained the concept of LCOE, which measures the total cost of building and operating a power plant over its lifetime, including factors such as capital and running costs, as well as externalities like environmental impact and health effects.

He emphasized that nuclear power, characterized by high initial capital expenditures (CapEx) and low ongoing operating costs, presents unique economic challenges that require careful consideration.

"The economics of nuclear power involve high capital expenditures and low running costs, but we're not yet talking about externalities like impact to the environment, to health, and to supporting the growing share of intermittent sources in the electricity grid. We have to take all these into consideration," Bernardo elaborated.

Moreover, Bernardo highlighted the significance of efficient planning, a robust supply chain, and a supportive regulatory environment in ensuring the success of nuclear projects.

He stressed that policy plays a crucial role in shaping the energy mix, balancing considerations of energy security, affordability, and environmental safety.

"With significant delays combined with high interest rates, a nuclear project can become uneconomic. It really depends on the quality of planning, the strength of the supply chain, and the regulatory environment," Bernardo emphasized, underscoring the importance of timely and cost-effective project execution.

As the Philippines aims to transition its power grid to have 50% renewable energy by 2040 while addressing the growing electricity demand, nuclear power emerges as a key zero-emissions baseload complement to variable renewable energy sources.

The Department of Energy targets the integration of 1,200 megawatts of nuclear capacity into the Philippine power mix by 2032 to support sustainable energy growth.

"A managed transition is essential. It is a big challenge to achieve this balance, and we need both the public and private sectors' cooperation to make it happen," Bernardo maintained, highlighting the collaborative effort required to navigate the complexities of nuclear energy development.

In conclusion, as the Philippines advances its nuclear energy program, careful consideration of safety, affordability, and environmental impact will be paramount.

Through strategic planning, collaboration, and a commitment to responsible development, the country can achieve a balanced energy mix that supports its economic growth and environmental sustainability goals.

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