$5-billion US loan to support Philippine nuclear power drive
US dangles up to $5 billion in loans as Manila eyes 1,200 MW from nuclear power by 2032
Manila: The Philippines’ Department of Energy (DOE) said the US could make available a financing package of up to $5 billion to support nuclear power development in the Asian nation.
The terms discussed run up to 25 years. The current offer is labelled as “debt support” for private companies, not a loan to the government.
Nothing has been signed yet.
Energy Undersecretary Giovanni Carlo Bacordo said the US International Development Finance Corp (IDFC) indicated "potential debt support" for private power companies wishing to invest in nuclear generation in the Philippines.
The department also engaged the US Export-Import Bank (Eximbank) about an engineering programme that can help with feasibility and design services.
The government is working with the Asian Development Bank (ADB) to ensure nuclear projects are bankable.
The talks came out of an October 10-18 mission to the US, where the delegation visited Idaho National Laboratory and met the US Nuclear Regulatory Commission (NRC) and the Department of Energy.
Energy Secretary Sharon Garin met US Energy Secretary Chris Wright in Washington on October 15.
US industry executives gave indicative timelines of about 2028 for micro-modular reactors and about 2030 for small modular reactors.
The Philippines targets 1,200 megawatts of nuclear capacity by 2032, rising to 4,800 megawatts by 2050.
Potential sites for nuclear power plants
Sites under study include Bataan, Batangas, Masbate, Pangasinan, Palawan and Camarines Norte.
The following Philippine energy companies have expressed interest in the programme:
Garin said an initial feasibility study suggests a nuclear project at the mothballed Bataan plant remains technically feasible, including a proposal to convert the site for small modular reactors.
Because the country follows a private-sector-led model without sovereign guarantees, initial development will carry commercial financing rates.
Bacordo said the goal is not only to build a plant but also to bring investment, create jobs for Filipino engineers and skilled workers, and open opportunities for local firms.
The announcement arrives as the Middle East conflict keeps oil prices high and exposes the country’s dependence on imported fuel.
Diversification
Most of the Philippines’ electricity is currently generated using fossil fuel, mostly coat.
Nuclear power could diversify energy supply and reduce exposure to oil shocks, but it requires huge capital, strong regulation and public trust, and depends on private developers taking on financing risk.
Private developers are expected to submit formal nuclear proposals by 2027.
Regulatory preparations are underway while feasibility results for converting or finally activating the mothballed Bataan nuclear power plant, Eximbank support, ADB bankability work.
It also remains to be seen whether local firms such as Meralco or Aboitiz commit.
For Filipino electricity consumers, nuclear won’t necessarily lower their bills soon. Industry timelines run to 2028-2030 for small reactors, and projects will carry commercial financing rates.
Over the long term, however, nuclear power as part of the larger energy mix help stabilise power supply and prices.
Westinghouse Electric Corp settled the BNPP case with the Government of the Philippines. The final, definitive out-of-court settlement agreement was officially executed on October 13, 1995. This resolved the massive civil litigation originally filed by the Philippine government in 1988. Under the finalised 1995 package, Westinghouse provided the Philippines with an overall settlement valued at over $100 million. This primarily consisted of $40.3 million in cash and two newly manufactured 501-F gas turbines (valued at $30 million each).
The Philippines is facing a growing electricity challenge as rising temperatures, economic expansion and increasing energy consumption put pressure on the country’s power supply.
Peak electricity demand is projected to climb by 10.7% to 22,231 megawatts (MW) in 2027, from 20,088 MW in 2026, with El Niño conditions expected to intensify demand for cooling.
The projection, reported by The Philippine Star on October 21, 2026, underscores the need to expand generating capacity while ensuring that the electricity grid can reliably deliver power to households and businesses.
The challenge becomes more pronounced over the longer term.
The Department of Energy expects Philippine electricity demand to exceed 40,000 MW by 2040, substantially above the country’s reported dependable capacity of 22,736 MW.
Enerdata’s Philippine energy-market analysis points to annual electricity consumption reaching approximately 122,710 gigawatt-hours (GWh) by 2030, reflecting continued growth in energy use.
These figures measure different aspects of the power system: peak demand represents the highest instantaneous load, while annual consumption measures the total electricity used over a year. Both indicate the need for sustained investment in generation, transmission and distribution infrastructure.
To address this demand, the government is pursuing a substantial expansion of renewable energy. The Philippines aims to increase renewables’ share of its electricity supply to 35% by 2030 and 50% by 2040.
Energy Secretary Garin said the country would need approximately 20 gigawatts (GW) of additional renewable energy capacity to meet the 2040 target.
The Department of Energy is also advancing a 10-year Green Energy Auction Program designed to offer at least 25 GW of additional renewable capacity between 2027 and 2035, with project deliveries expected to begin as early as 2027.
These initiatives are intended to accelerate investment in solar, wind and other renewable sources while helping improve the reliability of electricity supply.
Philippine Energy Plan 2023-2050
Under the Philippine Energy Plan 2023–2050, the government is targeting an initial 1,200 MW of nuclear capacity by 2032, increasing to 2,400 MW by 2035 and 4,800 MW by 2050.
However, these remain government targets rather than operating capacity commitments.
The DOE was still developing the procurement framework for the country’s first nuclear generation as of September 2026. This means that financing, regulatory approvals, project development and construction schedules will be critical to achieving the planned milestones.
Meeting these ambitions will require substantial capital investment, not only in power plants but also in transmission lines, grid modernisation and supporting infrastructure.
