Thu, May 24, 2018 - Page 5 News List

Manila mulls mothballed nuclear power plant

Reuters, MORONG and MANILA, Philippines

The Bataan Nuclear Power Plant is pictured in Morong town, Bataan Province, Philippines, on May 11.

Photo: Reuters

Wilfredo Torres was hired as a technician for Southeast Asia’s only nuclear power plant in the 1980s, but has spent the past decade giving guided tours at the never-used facility.

The Philippines splashed out US$2.3 billion on the 621-megawatt Bataan Nuclear Power Plant, but mothballed it after the collapse of a dictatorship and the devastating Chernobyl disaster.

Now, there is a chance that Torres, 56, might get to see the plant in action before he retires in four years.

As power demand soars in one of the world’s fastest-growing economies, the Philippine Department of Energy is looking seriously again at nuclear power and urging Philippine President Rodrigo Duterte to fast-track its revival.

“There’s still a few of us who have been here from the start who are hoping to see the plant running before we retire,” Torres said during a tour of the facility, nearly 200km northwest of Manila.

The department has asked Duterte for an executive order declaring the Philippines ready for a nuclear power program, said Philippine Assistant Secretary of Energy Gerardo Erguiza said.

“With the need for cheaper, reliable power, nuclear is ideal,” Erguiza said. “It’s a template in successful economies.”

Previous attempts to pursue nuclear energy in the Philippines have failed due to safety concerns and because central to the plan is the revival of the Bataan plant, built during former president Ferdinand Marcos’ rule.

Marcos ordered the Bataan plant built in 1976 in response to an energy crisis, convinced that nuclear energy was the solution to the Middle East oil embargo of the early 1970s.

Completed in 1984, the government mothballed it two years later following Marcos’ ouster and the deadly Chernobyl nuclear disaster.

From 2009, the government opened the plant to tourists for a fee, helping defray the cost of maintaining it, along with an annual state budget that this year was 32 million Philippine pesos (US$612,000).

Reopening the Westinghouse-built Bataan plant is an option, but so is building a new nuclear facility, said Erguiza, acknowledging the former would “open up so many wounds” after costs came in more than four times the initial budget.

Coal fuels half of the Philippines’ power grid, with natural gas and renewables each accounting for more than a fifth and oil the rest.

With an economy growing as fast as China’s — at 6.8 percent in the first quarter — Manila expects energy consumption to triple to 67,000MW by 2040.

By tapping nuclear — where upfront investment is high, but fuel costs are lower — electricity costs will drop, Philippine Nuclear Research Institute director Carlo Arcilla said.

“The biggest issue in the Philippines is that we have one of the most expensive power in the world,” he said.

Philippine power rates, which are not state-subsidized, were ranked the 16th most expensive out of 44 countries surveyed in a 2016 study commissioned by power retailer Manila Electric Co.

Japan topped the list.

Nuclear reactor builders Korea Hydro & Nuclear Power Co and Russia’s Rosatom last year submitted plans to rehabilitate the Bataan plant, at costs ranging from US$1 billion to more than US$3 billion, said engineer Mauro Marcelo, who oversaw the maintenance and preservation of the plant before he retired in March.

Other firms that have expressed interest include China’s top nuclear power plant builder, China Nuclear Engineering and Construction, and Belgium’s Tractebel, Marcelo said.

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