In the country’s bid for nuclear power development renaissance, the Philippine government – through the Department of Energy (DOE) – has been in search for viable financing tools and instruments that shall underpin planned deployments not just of the small modular reactors (SMRs) but also greenfield projects utilizing the larger-scale conventional nuclear technologies.

During the APEC Business Advisory Council roundtable discussion on Nuclear Energy Transition, Energy Secretary Raphael P. M. Lotilla conveyed that “here in the Philippines, part of our overall effort is collaborating with various institutions, including development partners on the approaches to our nuclear power program, especially on funding and financing mechanism to attract investments and encourage technology adoption.”

In the more developed countries like the United States, their pilot SMR projects leaned on financing support from the government; while developing countries with nuclear ambition like the Philippines struggle on how they can get their hands into capital for planned projects.

In navigating the intricate web of project financing for nuclear, Lotilla indicated that the DOE is also “working with our private sector to see what investment framework can best be adapted by government taking into account the particular risk facing nuclear power.”

Industry players previously sounded off recommendations on possible loan guarantees by the State; or energy transition financing that may be availed of from international funders.

Then, when the Maharlika Investment Fund (MIF) would finally be mobilized, there are also proposals that part of the investible fund may be funneled into nuclear power projects.

The deployments of SMR technologies in various parts of the world have been suffering from cost overruns and delays, with licensing seen pushed back to 2030-2031 timeframe, instead of the earlier 2028 target.

Most, if not all, nuclear power developers agonize over huge upfront cost for new builds – with some SMR pilot projects having installation costs reaching a staggering $10 million per megawatt (MW), which maybe too high a price to pay for consumers especially in energy markets serving penny-pinching consumers.

Advocates of nuclear power would always argue that the long-term cost of electricity generated from this technology will be cheaper, but the tangle of financial concern that is often overlooked is the huge upfront cost needed to advance construction for new projects.

The Philippines is still at a crossroads of policy and regulation framing for the rebirth of its nuclear industry, but investors are already eagle-eyed on what systems and structures the government will be instituting to concretize targeted investments on this technology sphere.

Lotilla acknowledged that “policy and regulatory reforms are ultimately needed to stimulate investments in nuclear power program.”

The energy chief added the success of the country’s nuclear power program that is set to take off by 2032, “will hinge on strong support from all stakeholders --- from policy makers, regulators, consumers, and the community.”

And while traversing inception phase, the DOE chief noted the agency “will continue to participate in discussions, to enhance our current programs. It is my hope that all our efforts -whether they are domestic or national, regional, or international - will contribute toward ensuring energy security and sustainability in the future.”

The planned deployments of SMR technologies in various parts of the world have been suffering cost overruns and delays, with licensing seen pushed back to 2030-2031 timeframe, instead of the earlier 2028 target.

The Philippines itself is eyeing gradual ramp up of its planned nuclear power installations – starting with 1,200 megawatts by 2032; then scaled up to 2,400MW by 2035 and 4,800 by mid-century.