The Philippine Department of Energy (DOE) has unveiled a far-reaching policy framework designed to pave the way for the country’s first commercial nuclear power station, granting it priority access to the grid, long-term contracting mechanisms and a package of investment incentives.

According to The Philippine Information Agency (PIA), in a circular signed on October 2, Energy Secretary Sharon Garin said the new policy establishes the foundation for what will be known as the Pioneer Nuclear Power Plant (Pioneer NPP) - the first privately developed and operated nuclear facility in the Philippines.

Under the framework, the Pioneer NPP will be designated as a baseload facility and enjoy priority dispatch rights in coordination with the Independent Market Operator and the System Operator. The DOE said the move will help support the nation’s longer term power security options.

According to the report, within 90 days of the circular’s issuance, the department is expected to identify suitable participation models and financing arrangements in collaboration with the Department of Finance, the Department of Economy, Planning and Development, the Maharlika Investment Corporation and other relevant agencies. Grid readiness will also be fast-tracked to ensure the smooth integration of nuclear energy into the transmission network.

Furthermore, to help to strengthen the project’s financial sustainability, the DOE plans to introduce flexible contracting models, including auctions, direct supply agreements and aggregated industrial consumption. The Energy Regulatory Commission will, in turn, develop a Regulatory Asset Base (RAB)-style system or a similar capital recovery mechanism, built around minimum 25-year contract terms extendable for a further 25 years.

The Pioneer NPP will also be automatically classified as an Energy Project of National Significance, giving it access to fiscal incentives and expedited permitting.

“This is more than just a policy document, it is an investment signal,” Garin said. “By establishing clear rules for nuclear integration, we are giving confidence to investors, partners, and stakeholders that the Philippines is ready to responsibly and strategically adopt nuclear energy as part of its clean energy transition. Nuclear will complement renewables by providing reliable, stable baseload capacity - ensuring that our economy has the energy security it needs to grow while meeting climate goals” PIA states.

The initiative marks a significant step in reviving the Philippines’ long-dormant nuclear ambitions. Following the 1973 oil crisis, the country constructed the 621 MWe Bataan Nuclear Power Plant — a Westinghouse-designed pressurised water reactor which was completed in 1984 at a cost of $460mn – around $1.4bn today. However, as reported by local media, Star the project was mothballed before fuelling due to fiscal constraints and safety concerns over seismic risks.