ACEN Corp. is weighing a pivot toward nuclear energy as it navigates the high costs of battery storage and the growing demand for reliable, around-the-clock power.

While the energy arm of the Ayala Group has built its reputation as a pure-play renewable energy firm, Eric Francia, ACEN chief executive officer said the potential re-introduction of nuclear power to the Philippines could fundamentally alter the firm’s long-term investment thesis.

Francia noted that ACEN is monitoring the technology closely to avoid being blindsided by shifts in the national energy landscape.

“We don't want to be surprised because it also impacts our long-term plans on renewables. So even if we're focused on renewables today, if nuclear happens tomorrow, that may have an impact on our investment thesis. But it's going to take time, but we're monitoring,” he told reporters.

But he also emphasized that any decision to invest would require a rigorous understanding of the sector, given that nuclear projects are long-gestation investments.

ACEN’s current focus remains on solar and wind, yet Francia admitted that the entry of nuclear power would likely disrupt existing plans for renewable integration.

The primary driver for exploring nuclear stems from the limitations of current renewable technologies. While ACEN has aggressively expanded its portfolio, Francia explained that renewables alone cannot yet satisfy the country’s entire baseload requirement.

The intermittent nature of solar and wind requires massive investment in battery energy storage systems to provide steady power, but the cost of such storage remains a major barrier to competing with traditional fuel sources.

If nuclear power is successfully integrated into the Philippine grid, Francia sees it as the natural partner for renewables rather than a direct competitor.

In this scenario, nuclear would provide the steady baseload supply, while solar and wind would handle mid-merit and peak demand during the day and night. This synergy could provide a pathway for the Philippines to meet its goal of reducing reliance on coal-fired assets, which currently dominate the power mix.

Francia noted that without nuclear as a baseload anchor, the pressure mounts on renewable providers to fill that gap. However, doing so requires renewables to compete on a cost basis against coal and natural gas.

With ACEN continuing its aggressive expansion—recently reporting a significant boost in its renewable capacity—the company remains sensitive to how a nuclear rollout would impact market pricing.

As the government considers reviving its nuclear program to ensure energy security and lower emissions, ACEN is positioning itself to adapt.

Francia concluded that nuclear power acts as a potential game-changer that could finally break the dominance of fossil fuels, primarily impacting the long-term viability of coal and gas investments in the region.