Government eyes first nuclear auction in mid-2027

MANILA, Philippines — The government is targeting June 2027 for the country’s first nuclear tender, with the winning bidder expected to secure a ready market for the project and potential access to state funding support.

Based on its indicative timeline, the Department of Energy (DOE) is proposing to launch the competitive bidding process next year, with issuance of certificates of award targeted by December 2027.

This is outlined in a draft circular issued by the DOE, which sets out a structured framework covering the nuclear tender design, capacity allocation, pricing, contracting, government support and site identification, among others.

At the core of the proposed guidelines is a provision that may be embedded in the terms of reference (TOR), allowing the winning bidder to seek negotiations for sovereign support, sovereign guarantees or other forms of state backing.

The draft circular also opens the door for Philippine National Oil Co., sovereign wealth fund manager Maharlika Investment Corp. or other authorized state entities to acquire up to a 10-percent stake in any winning project company.

The move will give the government a direct stake in the country’s first nuclear power plant, as well as potentially future facilities to be awarded under subsequent tenders.

The nuclear tender is designed to ensure that capacity from both pioneer and succeeding nuclear plants is fully contracted or backed by offtake arrangements, making the projects financially viable for operation.

Before the nuclear tender formally begins, the Energy Regulatory Commission should first set a threshold price or maximum bid offer.

This mechanism is intended to guarantee cost recovery and provide revenue certainty for developers, given the high upfront capital required for the country’s first commercially developed nuclear plant.

At first glance, developing the pioneer nuclear facility may appear straightforward, but in reality, the winning bidder would need to clear a series of permitting and licensing milestones before the plant can deliver power.

These include environmental and grid approvals, as well as key regulatory clearances such as the notice to proceed or construction authorization from the Philippine Atomic Energy Regulatory Authority.

PhilATOM is the regulatory body created under the Philippine National Nuclear Energy Safety Act, but nearly 300 days since the law took effect, it has yet to be constituted.

No implementing rules and regulations have also been issued despite a statutory requirement to release the IRR within 180 days of the law’s effectivity.

Under the existing roadmap, the Philippines aims to bring at least 1,200 megawatts of commercially operational nuclear capacity online by 2032.

However, the DOE’s draft circular paints a more gradual rollout. Under the proposed nuclear tender framework, capacity delivery is scheduled to begin only in 2038, with staggered deployment continuing in phases over a 10-year period.

The agency is currently seeking comments from stakeholders on the draft circular, with the goal of finalizing the rules before the end of the year.

Six months after the DOE circular takes effect, the TOR will be issued alongside the list of potential nuclear development sites, setting the stage for pre-bid activities.