2 July 2026

The Department of Energy (DOE) has announced plans to launch the Philippines' first nuclear energy auction, alongside the development of a dedicated policy framework to support the country's inaugural nuclear power project. The contemplated framework is expected to define commercial terms for nuclear projects, including cost recovery mechanisms, investor returns, government support positions including sovereign guarantee negotiation parameters, and potential incentives. The initiative forms part of the Philippines' broader nuclear roadmap, which targets a staggered delivery program beginning 2038.

Recommended actions

Potential investors and power sector stakeholders shouldmonitor the development and issuance of the DOE's Nuclear Capacity Tender Guidelines. The DOE has released a draft for public comment.

In more detail

The DOE is preparing a special auction mechanism for nuclear energy projects, which will serve as the primary route for awarding the country's first commercial nuclear plant. The DOE has released a draft of the Nuclear Capacity Tender Guidelines for public comment. The draft guidelines are intended to establish the policy and implementation framework for the competitive tender, award, development, construction, licensing, synchronization, delivery, and commercial operation of nuclear power generation capacity in the Philippines. The draft includes:

  • Rules to tender nuclear power generation capacity through an auction process
  • Staggered delivery, from 2038-2047
  • A six-month period, from effectivity of the guidelines, for the DOE to issue generic site identification and screening parameters for the tender, for the purpose of tender design, procurement, capacity allocation, and bidder eligibility
  • Inclusion of a provision for the winning bidder to request negotiation of sovereign support, sovereign guarantee, or other government support arrangement
  • Option of government to acquire up to 10% equity in the project company

The draft lists the following indicative timelines:

Milestone Indicative Timeline
Issuance of the Department Circular (DC)
2026
Issuance of Terms of Reference (TOR)  and generic site selection parameters
Within six months from effectivity of the DC
Publication of Invitation to Bid As specified in TOR
Bidder registration and qualification
As specified in TOR 
Pre-bid conference and bid bulletins
As specified in TOR 
Tender Proper
June 2027 
Post-tender evaluation and endorsement
June to November 2027
Issuance of Notice of Award/Certificate of Award
December 2027
License Milestone period
As specified in TOR and subject to applicable regulatory procedures
Construction Completion Period
Four (4) years from applicable construction authorization or notice-to-proceed issued after satisfaction of required authorization, unless otherwise specified
First target delivery
2038
Second target delivery
2040
Full staggered delivery horizon
2038-2047, unless otherwise specified

 

The DOE's release of the draft guidelines marks a key milestone in the operationalization of the Philippines' nuclear energy program. Potential investors and power sector stakeholders should monitor the development and issuance of the final guidelines, and evaluate early-stage entry strategies.