Meralco willing to contract power supply from BNPP once revived
By Myrna M. Velasco – May 31, 2022, 2:19 PM
from Manila Bulletin
Meralco willing to contract power supply from BNPP once revived
A top executive of Manila Electric Company (Meralco) said the power utility company will be willing to procure power once the 620-megawatt Bataan Nuclear Power Plant (BNPP) is resuscitated and back into commercial operation, which is one of the energy policies being pushed by the incoming Marcos administration.
During the power firm’s annual stockholders’ meeting, Meralco President and CEO Ray C. Espinosa sounded off that the company “will favorably consider contracting reasonably and competitively priced supply from the generation companies – including the BNPP – if the same becomes operational.”
He, nevertheless, stated that when it comes to having direct link into reviving the mothballed nuclear plant, “Meralco many not have the internal competencies to operate and maintain the BNPP.”
Several studies – mostly by foreign experts that included the International Atomic Energy Agency (IAEA) – had already been carried out when it comes to the prospects of reviving the BNPP and the scale of funding penciled in so far hovered at $1.0 billion to $2.0 billion.
One of the major policy issues that shall also be addressed by the Marcos administration is designating a specific entity that will operate the plant – and that is a necessary prescription because the Electric Power Industry Reform Act (EPIRA) already prohibits state-run National Power Corporation (NPC) from engaging into operation or investments in power generation.
Concerns of regulation as well as addressing safety risks for such technology option had likewise been repeatedly raised in policy discussions linked to BNPP’s repowering as well as on the overall plan of the government to pursue new nuclear power builds.
In the last BNPP study undertaken by the IAEA more than a decade ago, it prescribed multi-faceted tasks to be accomplished before the nuclear plant’s viability to operate could be determined.
The propounded action points stretch from having a comprehensive feasibility study on BNPP rehabilitation; determination of the technical, budgetary and safety requirements; and laying down possible alternative uses of the facility.
The feasibility study in particular shall determine the actual status of the plant, update its licensing requirements, define the rehabilitation process and the activities for infrastructure development and implementation plan.
By IAEA’s estimate, these processes could take seven (7) years to complete – which may already go beyond even on the term of the incoming leadership of the government.
For fresh plunge into nuclear power development, the Philippines is being apprised that it must need to allot at least 15-20 years as the realistic timeframe just to wade through the preparatory steps on nuclear power installations – that will range from the crafting of policies and regulatory frameworks; ensuring manpower training; developing skills and expertise on nuclear power operations; and securing the often-elusive social acceptance on such controversial technology deployment.
And with the specter of the Fukushima tragedy in 2011 that still hounds public memory as well as the cost overrun and construction hurdles being experienced in new nuclear power developments – chiefly for United Kingdom’s Hinkley Point-C and Finland’s Olkiluoto nuclear power facilities, the warning to all power markets with nuclear ambitions is to be discerning enough of the project cost risks and key lessons that go with these energy technology installations.
