THE possibility for the Philippines to produce nuclear power is gaining ground, following the pronouncement of Energy Secretary Alfonso G. Cusi on Tuesday that he is in favor of nuclear power, saying this is cheaper than other fossil fuel.
“I am not against it. I am open to it. As energy secretary, it is my duty to study all options to ensure a secure power supply for the coming generation,” he said, when asked of his position on the matter.
The Department of Energy (DOE) is the host agency in the International Atomic Energy Agency (IAEA) and International Framework for Nuclear Energy Cooperation (Ifnec) conference on the prospects of nuclear power in the Asia-Pacific region.
Dr. Mikhail Chudakov, IAEA deputy director general and head of the Department of Nuclear Energy, said nuclear power is a “very good option” for the Philippines, an archipelago of 7,100 islands. However, Chudakov said his group will not force anyone to embark on nuclear power.
“The IAEA is not in the position to push the country.… This is a sovereign decision of each country,” he said.
IAEA member-states adopted a Nuclear Safety Action Plan, which includes specific actions for countries embarking on nuclear power. This will help ensure that a “safety first” approach becomes fully entrenched among nuclear power-plant operators, governments and regulators.
“What we suggest is for the country to conduct [a] self-assessment,” Chudakov added.
Dr. Alex Burkart, cochairman of Ifnec, who was also among the panelist, said it takes a knowledgeable decision for a country to embark on nuclear power.
“We are not here to influence your choice. We are interested in helping the country making an informed decision. It takes a lot of effort and time to execute that decision. We are in the business of helping countries understand what it takes and then come up with a decision to move forward,” he said.
Cusi said lawmakers are inclined to start the public policy debates on the prudence and soundness of a nuclear-power program for the country.
Senate President Aquilino Pimentel, who was present during the opening ceremony, said legislation would have to be enacted if and when the country will resort to nuclear power.
“Our alternative is nuclear power. Nuclear power offers so much potential. Many countries have benefited from it. But it can also have very serious negative consequences, especially in a country located in what is called the Pacific Ring of Fire. Hence, we must study nuclear power carefully,” he said.
‘Expensive yet cheap’
Cusi could not deny the fact that a nuclear-power project is expensive to build. However, in the long term, nuclear-power rates are much cheaper than other fossil fuel.
“Sa nuclear, ito ’yung power source na ’yung presyo niya na talagang predictable. Hindi katulad ng oil na nagpa-fluctuate ’yung price. Itong nuclear, kung ang presyo ngayon, ’yun ang pwede maging presyo in the next 50 to 100 years,” Cusi pointed out.
As to how much per kilowatt-hour nuclear power costs, Cusi said this would be determined during the conduct of further studies by experts.
“Nuclear is still the cheapest in terms of electricity being generated. We want to be competitive with the rest of our neighbors, so we have to come up with a cheap source of energy, and that is really nuclear. The capital cost, you can spread that,” Cusi said.
He said a “nuclear team” would be created to zero in on crafting a policy on nuclear energy for the Philippines.
“We will have that. We will have a team, the nuclear policy body. Actually, now it’s NPC [National Power Corp.], the DOE, Philippines Nuclear Research Institute. But we want to review that,” Cusi added.
Part of the study would be to incorporate nuclear power in the energy mix, Cusi said.
Need for nuclear
The country’s power-generation mix as of end of 2015 is composed of 45-percent coal, 25-percent renewable, 23-percent natural gas and 7-percent oil. On the other hand, our 2015 installed capacity mix is made up of 66-percent fossil fuels, 15 percent of which is in natural gas.
“Right now, nuclear energy is zero,” Cusi said. “We have to search for proper energy mix that would secure power supply in the future. Kailangan natin ’yung energy supply not coming from one basket, hindi lang pwede from coal, gas, or from oil. Kailangan magkaroon tayo ng proper combination.”
With intensified electrification programs, increasing population and strong GDP growth, demand for electricity is expected to grow by an average of 5 percent per year until 2030, or around 126 terra-watt hour (TWh) from the 2015 level of 82 TWh, according to Cusi. “This is the most pressing concern for the country.”
To meet this requirement, “We have to weigh all our options,” Cusi said.
“Given its known characteristics, nuclear technology can be viable choice for the country. We are told that on a “levelized basis,” nuclear power is an economical source—high on productivity and reliability, and low on costs and emissions. It is also said the nuclear infrastructure and system is more cost-efficient in the long term.
“Reports and special studies also say operation of nuclear plants has become safer, more predictable and more dependable, with useful life of over 60 years,” Cusi said.
IAEA’s vast knowledge and work on nuclear power, including its own strict safety standards would help the DOE validate this information.
BNPP revival?
The country’s first and only attempt at nuclear-power development was a 620-megawatt (MW) Bataan Nuclear Power Plant (BNPP) in August 1977.
It was supposed to be the first of two nuclear-plants to be built in the northern province of Bataan. It was also the first nuclear power plant in Southeast Asia, and the vaunted solution to the 1973 oil crisis that had adversely affected the global economy, including the Philippines.
The project, however, was mothballed in the wake of the Chernobyl disaster in 1986. But then, clamor for the reopening of the BNPP was revived during the power crisis in the 1990s and the skyrocketing of oil prices in 2007.
During these periods, Cusi said the DOE actually came close to reconsidering nuclear power as a potential energy source for the country.
But then, the Fukushima nuclear- plant incident happened in 2011, creating global panic and concerns about the safety and integrity of nuclear plants.
“BNPP is being studied. We are going to inspect that on Thursday. We’re going to have different discussions tomorrow [Wednesday] to determine its present status,” Cusi said, when asked if BNPP would be revived instead of constructing a new nuclear plant.
He said it would cost “a billion dollars to put [BNPP] into commercial operation.”
Chudakov said it takes 10 years to build the infrastructure for the nuclear plant. He added that IAEA is “ready to make the necessary assessment” on BNPP should it be asked to do so.
Mixed reaction
Industry stakeholders have expressed different views on this.
Fernando Martinez, Independent Philippine Petroleum Cos. Association chairman and president of Eastern Petroleum Corp., said the country should be open to it, saying nuclear energy is “more cheaper and cleaner.”
“We should be open to it. The bad experience in project implementation should not bar us from adopting a widely adopted technology, which has benefited a lot of developed and newly industrialized countries,” he said in a text message when sought for comment.
DMCI President Isidro Consunji is also in favor of this. “It’s ok with me as long as it is competitive and safe,” he said in a text message, adding that even if nuclear power would compete with coal “I am still ok with it. There is still room for all types of fuel.”
Aboitiz Power Corp. President Antonio Moraza said the idea could be “controversial,” since many groups are opposed to it.
“I feel it would be very controversial. It would require major education by proponents in cooperation with the government. I also don’t understand very well, but minimum size is an issue,” he said via text message.
Alsons Consolidated Resources Inc. Vice President for Business Development Joseph Nocos said it would require extensive technical studies to determine the feasibility of nuclear power in the country.
“Among others, site selection in relation to the seismic characteristics of the country, proper waste disposal and social acceptability will have to be carefully considered,” Nocos said.
However, he said, nuclear energy can be “economic, safe and environment friendly source of electricity.”
Pursuing the path toward nuclear power for the Philippines may not be a walk in the park, Cusi said. “But this regional conference is definitely a forward step in the right direction. Our nation will benefit from the dynamism of the discussion and the transference of knowledge that we expect from this exercise,” Cusi said.