PH foray into nuke power for Maharlika investment eyed —DOE

The Philippines’ plan to venture into nuclear power generation could be among the areas of investment for the country’s first sovereign wealth fund, Maharlika Investment Fund (MIF).

At the sidelines of the Philippine International Nuclear Supply Chain Summit in Quezon City on Wednesday, Department of Energy (DOE)-Nuclear Energy Division head and Energy Utilization Management Bureau Director Patrick Aquino said that the results of the three-day nuclear supply chain sector business matching activity would be pitched to the Maharlika Investment Corporation (MIC).

MIC is the state-owned firm running the MIF.

“We leave it up to the sound judgment of Maharlika whether they come in… we'll be providing them the information from this event and from all of the things that we are doing so that they can make an informed decision on to what extent, if ever they will invest in nuclear [energy],” Aquino said.

MIC had earlier said that its initial investment direction would be to develop transmission and distribution infrastructure in the country’s off-grid islands to reduce the cost of electricity in far-flung rural areas.

The state-run special purpose vehicle is also eyeing to make its first investment by the fourth quarter or before the end of the year.

“Their [MIC’s] charter is development. And you know, for a country like us and our aspirations, electricity power is a big component,” the DOE official said.

In the same event, Energy Secretary Raphael Lotilla said that the DOE has tapped the MIC to “study the costing and what financing mechanisms might be available” for the government’s plan to add nuclear power into the country’s energy mix.

“Because Maharlika has people who are studying financing in the energy sector. We have requested them… to do the studies on how to finance because as the President pointed out, this is one area which needs to be studied further by the Philippines on what are the modes of financing available and how to go about financing,” Lotilla said.

In his welcome remarks, the Energy chief bared the government’s aim to gradually add nuclear power into the energy mix.

“An initial nuclear energy capacity of 1,200 megawatts (MW) in 2032 expanding to 2,400 MW by 2035 and to reach 4,800 MW by 2050,” Lotilla said.

The Energy Department has been saying that the country will have commercially operational nuclear power plants by 2032.

United States Ambassador to the Philippines Marykay Carlson said 16 American companies and institutions, representing the nuclear supply chain, are in the Philippines to explore trade and investment opportunities in the country.

“This delegation is but one example of how the United States is ramping up its commercial engagement in the Philippines nuclear energy sector,” Carlson said.

In July, the US and the Philippines Agreement for Cooperation in Peaceful Uses of Nuclear Energy or 123 Agreement entered into force.

The agreement provides for the safe and secure use of nuclear energy for peaceful purposes, for information, knowledge, and technology exchange related to nuclear safety, security, and non-proliferation.

The accord aims to facilitate Philippine-US cooperation for the transfer of information, nuclear material, equipment and components taking into full account the standards and safeguards set by the International Atomic Energy Agency (IAEA) and under their respective national laws, international agreements, and regulations.—LDF, GMA Integrated News