Transition financing for nuclear tech in PH sought

Transition financing for nuclear tech in PH sought By MYRNA M. VELASCO For nuclear power developments to take off in the country, private sector players are batting for transition financing or loan guarantees on top of the other set of incentives and a firm policy and regulatory frameworks for the sector. The planned financing modalities had been laid down by Aboitiz Group President and CEO Sabin M. Aboitiz, a member of the APEC Business Advisory Council-Philippines (ABAC Philippines). Aboitiz voiced out the wish of energy sector players that nuclear technology, including the emerging small modular reactors (SMRs), be ideally packaged for public-private partnership (PPP) type of infrastructure development. “Governments can create enabling policies, such as regulatory streamlining, transition financing, loan guarantees, and market-based incentives that promote nuclear energy and SMRs,” he stressed. Transition financing refers to any form of financial support that can help high carbon-emitting companies or entities to shift their portfolio into green energy technologies. On the other, loan guarantee would entail having another party – and that may include the government - to assume the responsibility or financial obligation of the borrower-entity in the event of a default. Aboitiz added that, “private sector innovation and capital, coupled with public sector regulatory support and risk management, can drive the growth of nuclear energy.” He further asserted “in our path towards sustainability, nuclear energy, particularly through SMRs, offers a compelling path forward. SMRs are more flexible, less capital intensive, and can be deployed in a wider range of locations than traditional nuclear power plants. “ In Aboitiz’s view, SMRs “can be crucial components of a balanced, zero-carbon energy portfolio,” adding that, “with the appropriate safety measures in place, (the technology) is not just a clean energy source, it is also a reliable one, unaffected by the vagaries of weather or geographical constraints.” He, nevertheless, highlighted that “the adoption of advanced technologies like SMRs is not without its challenges,” hence, it is on that precept that he sets pitch on the need to learn from the experience as well as gain scale of expertise from other markets that have already advanced on the safe and effective deployment of nuclear power installations. In his keynote message at the roundtable discussion convened by ABAC Philippines, Energy Secretary Raphael P.M. Lotilla stated that the Department of Energy “is working with the National Economic and Development Authority (NEDA) on the enabling policy framework for private sector participation in the nuclear power space.” The policy crafting efforts of the Executive Branch will complement the ongoing process of legislation on institutionalizing the policy and regulatory frameworks for the targeted nuclear power resurgence in the country. The energy chief also indicated that the roadmap for planned SMR and nuclear power investments in the country is due for completion this year.