MERALCO’s Nuclear Journey: A Blueprint for Southeast Asia

The Manila Electric Company (MERALCO), the Philippines’ largest electric distribution utility, has emerged as a pioneer in Southeast Asia’s civil nuclear sector over the past few years. With a strategic focus on sustainable energy, MERALCO has undertaken a series of initiatives, including scholarship programs and partnerships with global nuclear firms. This article chronicles MERALCO’s activities since 2022, outlines its rationale for entering the nuclear space, addresses current and future challenges, and proposes next steps—offering a roadmap for other Southeast Asian utilities considering a similar transition.

MERALCO’s Nuclear Activities (2022–2025)

MERALCO’s involvement in civil nuclear energy began gaining momentum in 2022. In March 2022, following an executive order by then-President Rodrigo Duterte to include nuclear power in the Philippines’ energy mix, MERALCO signaled its interest by exploring feasibility studies for small modular reactors (SMRs) and micro-modular reactors (MMRs). By November 2022, negotiations for a U.S.-Philippines “123 Agreement” for civil nuclear cooperation were launched during U.S. Vice President Kamala Harris’s visit, laying a legal foundation for future collaborations.

In March 2023, MERALCO announced its readiness to offer scholarships for students and professionals interested in nuclear science and engineering, aiming to build local expertise. This initiative materialized with the launch of the Filipino Scholars and Interns on Nuclear Engineering (FISSION) program on September 10, 2023, targeting graduate studies at top global universities like the University of Illinois Urbana-Champaign (UIUC) and Ontario Tech University. The program, set to run from 2025 to 2027 with internships in 2027–2028, includes partnerships with Canadian and American institutions, with MOUs signed on August 23, 2024.

A significant milestone came on November 15, 2023, during the Asia-Pacific Economic Cooperation (APEC) Summit in San Francisco, where MERALCO signed a cooperative agreement with Ultra Safe Nuclear Corporation (USNC) to study MMR deployment. This followed a pre-feasibility study completed by May 2024, with plans for a full feasibility study announced on May 2, 2024, targeting operational micro-nuclear plants in remote areas by 2028. On October 9, 2024, MERALCO signed an MOU with South Korea’s Doosan Enerbility to explore low-carbon initiatives, including nuclear energy. The latest development occurred on April 3, 2025, with a two-year memorandum of cooperation with France’s Électricité de France (EDF) to conduct feasibility studies and explore financing options.

Rationale for MERALCO’s Nuclear Involvement

MERALCO’s entry into the nuclear sector is driven by the Philippines’ growing energy demand and the need for a sustainable, low-carbon future. The Philippine Energy Plan (PEP) targets 1,200 MW of nuclear capacity by 2032, aligning with national goals to reduce greenhouse gas emissions by 75% by 2030 and source 50% of energy from renewables by 2040. MERALCO sees nuclear energy, particularly SMRs and MMRs, as a reliable solution for remote and off-grid areas, complementing its sustainability strategy. Chairman Manuel V. Pangilinan has emphasized the need to prepare a skilled workforce and regulatory framework, while Executive Vice President Ronnie Aperocho highlights the technology’s potential to balance energy security with environmental goals.

Challenges Facing MERALCO

MERALCO faces several hurdles. Current challenges include the lack of a dedicated atomic regulatory agency, as noted by Pangilinan in November 2023, which complicates oversight and safety compliance. The pre-feasibility study with USNC revealed financial and technical uncertainties, with cost overruns in similar SMR projects (e.g., NuScale) raising concerns, as mentioned by CEO Ray Espinosa in March 2023. Future challenges include public acceptance, given historical skepticism following the mothballed Bataan Nuclear Power Plant, and geopolitical risks tied to international partnerships. Regulatory delays and the high capital costs of nuclear projects—often exceeding $5 billion for 1,000 MW—pose additional barriers.

Next Steps for MERALCO

MERALCO’s next steps include completing the EDF feasibility study by April 2027, focusing on site selection, integration, and economic viability. The full feasibility study with USNC, expected by November 2024, will guide site-specific planning and deployment timelines. Expanding the FISSION program to include more scholars and partnerships with institutions like Harbin Engineering University and Tsinghua University (visited in 2024) will build a robust talent pipeline. MERALCO also plans to advocate for a national nuclear regulatory body and engage with the Department of Energy to align with the 2032 nuclear target.

Blueprint for Southeast Asian Utilities

MERALCO’s approach offers a valuable blueprint for utilities in Indonesia, Vietnam, and Thailand, which are also exploring nuclear energy. Key lessons include:

• Capacity Building: Launch scholarship programs (e.g., FISSION) to develop local expertise, as seen with MERALCO’s partnerships since 2023.

• Strategic Partnerships: Sign MOUs with global firms (e.g., USNC, EDF, Doosan) to leverage technical and financial support, as demonstrated in 2023–2025.

• Phased Studies: Conduct pre-feasibility and full feasibility studies to mitigate risks, following MERALCO’s timeline from 2023 to 2028.

• Policy Advocacy: Collaborate with governments to establish regulatory frameworks, addressing MERALCO’s current gap.

• Public Engagement: Proactively address public concerns through education, learning from MERALCO’s cautious approach to historical nuclear hesitancy.

By emulating MERALCO’s structured entry—blending education, international collaboration, and phased implementation—Southeast Asian utilities can navigate the complexities of nuclear energy adoption, paving the way for a sustainable regional energy future.

Conclusion

MERALCO’s multifaceted approach to civil nuclear energy, from scholarships to international MOUs, reflects a strategic vision to meet the Philippines’ energy needs sustainably. Despite challenges like regulatory gaps and high costs, its proactive steps provide a replicable model for Southeast Asia. As MERALCO progresses toward 2028 deployment goals, its journey could inspire a regional nuclear renaissance.