The Department of Energy (DOE) is eyeing to tap technical assistance from either the United States Agency for International Development (USAID) or the United Nations Development Programme (UNDP) for targeted new survey on ‘social acceptance’ for nuclear power as an option in the Philippine energy mix.

Energy Undersecretary Sharon S. Garin noted, in an interview, that the planned new survey will be a follow-through to what was done by the department in 2017 - primarily to gauge public pulse on the government’s plan to revive nuclear in future energy installations.

In the past survey, the public acceptance level for nuclear power was at a high 70-percent plus, but the DOE wants a new round of survey so it can secure added data and other usable information that can aid it in forward formulations of policies for this technology deployment.

Typically, surveys would provide detailed and systematic methods how to analyze data that could then guide investors on their business decisions.

On top of that, Garin emphasized that the help of these international organizations “will also be needed on our planned feasibility study on nuclear power financing, because this is a new thing for us, and we don’t have anything concrete yet how do we finance nuclear power projects.”

The major dilemma of new nuclear power builds at this time are those on huge upfront capital outlay as well as the cost overruns being incurred because of the delays being experienced in project construction, hence, these are the major concerns that the Philippines would also want to navigate prior to its renewed plunge into this technology installation.

This early, prospective investors in the nuclear power sector of the Philippines are already batting for loan guarantees or transition financing, but that is a realm that the government has yet to study deeper so it can help eventual project sponsor-firms.

In other energy markets, nuclear power projects are typically funded by government or power utility giants with very deep pockets – but in the case of the Philippines, this is a tight spot still searching for answers.

Installations of nuclear reactors in recent years have seen huge upfront capital expenditures ranging from $7.0 million to more than $10 million per megawatt, including those with cost overruns; and that will be a whopping financial responsibility for Filipino consumers once these are recovered by investors via the electric bills.

Over the operating life cycle of nuclear power facilities spanning 40 to 60 years, generated electricity may end up cheaper, but it will be the daunting upfront cost and the complexity of project rollouts that may eventually snag future nuclear power projects in the country.

To date, the project financing landscape for nuclear is still evolving – and the global nuclear industry is still struggling also on what are innovative financing models that can take this technology out from the entanglements of distressing financial risks on investments.