ACEN Corp., a leading renewable energy developer in the Philippines, is closely monitoring the potential entry of nuclear power into the country's energy mix, viewing it as a possible disruptor to coal and a factor that could influence long-term investments in renewables.
In a recent briefing, ACEN president and CEO Eric Francia said the company has no immediate plans to venture into nuclear energy but is keeping a watchful eye on developments.
"So even if we're focused on renewables today, if nuclear [energy] happens tomorrow, that may have an impact on our investment thesis," he told reporters. "It's going to take time, but we're monitoring."
Francia noted that nuclear power could affect baseload supply, particularly coal-fired plants, which currently dominate the market. While renewables are expanding rapidly, they cannot yet provide round-the-clock power at competitive costs, even with battery energy storage systems (BESS). BESS allows storage of excess electricity for release during peak demand, but cost remains a hurdle.
"Renewables could be a nice complement to nuclear power to fill in the midmerit supply," Francia said, referring to generating capacity that manages fluctuating demand throughout the day. "Without nuclear, there is pressure for renewables to go baseload, but it has to be able to compete against coal and or gas."
Coal remains the cheapest and most reliable baseload fuel in the Philippines, despite the push for cleaner energy. Nuclear power is expected to contribute to the grid by 2032, with the government completing licensing and permitting flowcharts and identifying 15 potential sites.
Manila Electric Co. (Meralco) is leading the charge into nuclear energy, having received a $2.7 million grant from the U.S. Trade and Development Agency to study small modular reactors (300–450 MW capacity).