Statement on the proposed Department Circular by the Department of Energy prescribing the guidelines for the conduct of the nuclear power generation capacity tender for the pioneer nuclear power plant and succeeding nuclear power plants
We express grave concerns about the draft Circular of the Department of Energy (DOE) on setting the guidelines, policy, and implementation framework for the auction of the Philippines’ pioneer nuclear power plant, which undergoes a public consultation on 23 July.
Based on this document, it appears that the necessary safeguards to mitigate risks associated with building and operating nuclear power are being disregarded just to quickly attract as much capital as possible. It is fair to wonder if the DOE itself is confident in the process for nuclear power it lays out in this document, given the inconsistency in the details.
First, under the Philippine Energy Plan, it envisions nuclear power being part of the national energy mix by 2032 – yet in the circular itself, the first nuclear plant in the country is expected to be delivered by 2038.
Second, the expected completion period for the construction of the nuclear plant is expected to be four years, which is intended to hasten the entry of such fuels in the country’s energy sector. Yet not only is this an underestimation of the usual length of time that it takes for these facilities to be finished from cases worldwide; the draft circular itself would allow a potential extension of this period, which undermines the whole point of hastening said entry to begin with. There are also no specific provisions that would penalize proponents from fulfilling their promised timelines, which is another key and necessary element that is missing in this draft.
Third, allowing both the extension of the construction completion period and negotiation for the Philippines’ sovereign support or guarantee only after the awarding to the winning bidder brings forth a massive potential fiscal risk that the government might be unable to shoulder. This risk is heightened by the notoriously-high costs of building nuclear power plants – including during the only previous time the country tried to have one.
Fourth, it is also missing emphasis on key environmental and social safeguards that are a necessity for a high-risk venture like nuclear power plants. Aligned with Republic Act 12305 (“Philippine National Nuclear Energy Safety Act”), this draft circular must make stakeholder consultations and feedback from proponents mandatory as required acts for transparency and accountability – especially after the exposed corruption in mismanaged flood control projects. Furthermore, any nuclear project must be required to have secured compliance through Environmental Impact Assessment, given its inherent risks.
Not only are these inconsistent details problematic on their own; it also builds on a questionable provision in last year’s DOE circular that prioritizes nuclear power in dispatch to the national grid, no matter which technology it is. This is contradictory to the DOE’s own supposed “technology-neutral” approach that it has used as a justification for its energy policies for years. Furthermore, the Implementing Rules and Regulations of RA 12305 are not even finalized yet, as of this writing.
We have seen yellow and red alerts in energy supply, rising electricity rates that are confirmed to be the highest in Southeast Asia, skyrocketed oil prices that have yet to return to last year’s price levels, and even contracts in solar plants discovered to be unfulfilled – all of which occurred in just the first half of this year alone.
With all of these headlines and the inconsistencies in this planned process, can you blame us if we don’t think the push for nuclear power is not really for the benefit of the Filipino nation?