DOE advances rules for first nuclear power tender

The Department of Energy is advancing proposed rules for the competitive procurement of the Philippines’ first nuclear generation capacity as the government prepares for the targeted entry of nuclear power into the country’s electricity mix beginning in 2032.

The framework will determine how nuclear capacity will be competitively procured, priced and integrated into the grid, making the rules critical to electricity consumers because the eventual projects will involve long-term generation costs, major transmission requirements and strict nuclear safety regulation.

The government is targeting an initial 1,200 megawatts of nuclear capacity by 2032.

Its energy plan envisions nuclear capacity increasing to 2,400 MW by 2035 and 4,800 MW by 2050.

DOE Director Patrick T. Aquino presented revisions to the proposed Department Circular Prescribing the Guidelines on the Conduct of the Nuclear Generation Capacity Tender for the First Nuclear Power Plant and Succeeding Nuclear Power Plants during the second public consultation Sept. 25, 2026, at the DOE Auditorium in Bonifacio Global City, Taguig.

The revised draft incorporates comments received during the first round of stakeholder consultations, including inputs from the National Grid Corp. of the Philippines, Meralco and other industry stakeholders.

Among the proposed changes are provisions covering grid readiness, project delivery schedules, regulatory approvals and pricing parameters.

The DOE said the revisions are intended to provide clearer requirements for prospective bidders and ensure that nuclear generation can be integrated into the country’s power system.

Under the revised proposal, preliminary grid feasibility, where applicable, would be considered when determining the capacity to be offered in each tender.

Bid requirements would also take into account substations and connection points, transmission requirements and grid synchronization.

The grid provisions are particularly important because nuclear plants would add large blocks of generation capacity that must be supported by sufficient transmission infrastructure and system reliability measures.

The DOE is also proposing to procure nuclear generation capacity in stages instead of requiring the entire planned capacity to be delivered at once.

Delivery schedules would consider site development, technology, financing, licensing and grid readiness.

Construction timelines would be aligned with the type of nuclear technology to be deployed and the approved proposal of the winning bidder.

Winning a nuclear generation capacity tender, however, would not automatically authorize a developer to construct or operate a nuclear facility.

Construction and other regulated activities could proceed only after the developer secures the required authorization from the Philippine Atomic Energy Regulatory Authority, or PhilATOM, along with other applicable permits and approvals.

PhilATOM would retain jurisdiction over nuclear safety and regulatory matters.

Its responsibilities would include oversight of siting, construction, commissioning, operation and other activities covered by its mandate.

The DOE, meanwhile, would administer the competitive procurement of nuclear generation capacity.

The proposed separation of functions places procurement and energy planning under the DOE while leaving nuclear safety decisions to the specialized regulatory authority.

The revised draft also establishes parameters for price offers submitted during nuclear tenders.

Bids exceeding the applicable nuclear tender price or price ceiling would be subject to disqualification under the tender rules and applicable regulations.

The Energy Regulatory Commission would determine the applicable price threshold, reserve price, tariff range or pricing methodology for each tender round.

The pricing provisions will be a key consumer issue because the successful bid structure would influence how the costs of future nuclear generation are ultimately reflected in the power sector.

The proposed circular remains under consultation and has not yet been finalized.

The DOE said comments received during the second public consultation will be evaluated before the guidelines are completed.

The government aims to establish a competitive, transparent and technically sound procurement framework ahead of the planned introduction of nuclear energy into the Philippine generation mix beginning in 2032.