But while this trajectory signals optimism, it comes with significant risks. The report warns of potential disruptions from geopolitical tensions, fluctuating commodity prices, and climate-related challenges — all of which could undermine progress.
Energy supply, particularly its cost and reliability, sits at the heart of these risks.
According to a 2023 Ember report, coal powers 61.9 percent of the country’s electricity, with 80 percent of that coal being imported. This reliance has made the Philippines the most coal-dependent nation in Southeast Asia, resulting in electricity rates reaching P11 per kilowatt hour — the second highest in the region.
These high energy costs strain households, deter investors, and erode economic competitiveness, and addressing this issue has become imperative for fostering sustainable growth.
Nuclear energy touted as the solution
Alpas Pinas, a non-stock, non-profit organization advocating for affordable and reliable energy, believes nuclear power could provide the solution.
In a media briefing on Tuesday, Jan. 28, 2025, Alpas Pinas lead convenor Gayle Certeza and Pangasinan 2nd District Representative Mark Cojuangco outlined how nuclear energy could address the Philippines’ energy challenges while boosting economic resilience.
Cojuangco emphasized the importance of affordability alongside access to energy, criticizing traditional energy cost metrics like the levelized cost of electricity (LCOE) for failing to account for broader system expenses such as transmission and backup capacity.
“Nuclear energy stands out as a cost-competitive option when both system costs and externalities are considered,” he explained. “Its reliable, low-carbon supply offers a pathway to affordable and sustainable energy solutions, making it an attractive alternative in the Philippines’ energy transition.”
'Cheaper than renewables'
Certeza added that renewables often carry disproportionate system costs as adoption increases. By contrast, nuclear energy requires a one-time investment, eliminating the need for backup sources.
“With nuclear, system costs are a one-time investment, and the energy source is effectively infinite,” she explained. “This makes it a cheap and reliable option to fuel economic growth.”
Both pointed out that, globally, there is growing recognition of nuclear energy’s role in stabilizing power supply and reducing dependency on fossil fuels.
Germany, after phasing out its nuclear reactors in 2022, is reconsidering nuclear energy amid an energy crisis exacerbated by geopolitical tensions. Major tech companies like Microsoft are also turning to nuclear power to sustain energy-intensive operations, such as data centers powered by artificial intelligence.
Multiplier effect
Beyond energy cost reductions, nuclear power has the potential to create jobs across sectors, according to Cojuangco.
“The ripple effect of nuclear energy adoption can transform industries and uplift communities, creating direct and indirect employment across multiple sectors,” he said.
Both advocates stressed that the push for nuclear energy in the Philippines is also gaining legislative momentum.
Senator Alan Peter Cayetano has sponsored the Philippine National Nuclear Energy Safety Act, which aims to establish the Philippine Atomic Energy Regulatory Authority to oversee nuclear safety and security.
Alpas Pinas and Cojuangco urged policymakers to act decisively.
“Nuclear energy is the only clean, cheap, and reliable energy source this country needs to fuel economic growth,” Certeza concluded. “If we don’t act now, the future of the Philippines may not be as positive as we believe it to be.”
