The Department of Energy (DOE) is preparing a policy framework that could provide investor incentives and cost recovery mechanisms for the country’s first nuclear power project, Energy Secretary Sharon S. Garin said.

Speaking to reporters on the sidelines of a June 17 event in Taguig City, Garin said the DOE is drafting a circular that will outline how the government intends to support the development of an initial nuclear facility, including provisions on project economics, community benefits, and investor returns.

“It’s supposed to be like how we will do with the first project—how it will recover costs, the benefits to communities, things like that,” Garin said.

The DOE chief said the framework is intended to help prospective developers evaluate potential projects by providing greater clarity on how investments could be recovered and what support mechanisms may be available.

Among the options being studied is a system that would provide developers with an assured rate of return, similar to the structure used under the government’s Green Energy Auction (GEA) Program.

“Well, they’ll be assured of a rate of return, similar to a GEA project. So there’s a certain assurance on the cost recovery,” Garin explained.

She explained that the DOE is reviewing key commercial considerations, including how much a project could charge per kilowatt-hour, how long cost recovery could take, and what project configurations developers may propose.

“So those are the things that we wanted to go over so at least those interested can already study what kind of project they will propose—whether it will be large or small, where it will be located, things like that,” she said.

The framework remains in the early stages of development, with the government yet to determine the potential site, technology, and scale of the country’s first nuclear facility.

According to Garin, the circular could be released by the end of 2026 or early 2027, although she emphasized that regulatory readiness remains a key consideration.

“I would say probably the end of year or early next year because I haven’t seen it yet and it’s a very sensitive topic,” she said.

“Dapat kasi ready na yung mga regulators, mga things like that,” she added.

The Philippines has been exploring the role of nuclear energy as part of its long-term energy transition strategy, with policymakers viewing the technology as a potential source of reliable, low-carbon electricity that can complement renewable energy development.

If the government provides a clear cost recovery mechanism and assured returns, will that be enough to attract private developers to build the Philippines’ first nuclear power project?

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