The US Trade and Development Agency’s (USTDA’s) assistance will provide Meralco PowerGen (MGEN) – a subsidiary of the Philippines’ largest private electric distribution utility Manila Electric Company (Meralco) – a comprehensive technical review of advanced US-made small modular reactor (SMR) reactor designs. The findings will enable MGEN to develop a shortlist of US technology providers for its future procurement needs. The assistance will also deliver an implementation roadmap that incorporates international best practices for project structuring and financing.
USTDA is an independent federal government agency focused on connecting US companies with export opportunities in emerging markets. The agency achieves its mission by funding feasibility studies, technical assistance and pilot projects that integrate US private sector innovation into infrastructure projects at the critical early stages when design choices and technology options are determined. It also connects overseas project sponsors with US partners through its reverse trade missions, industry conferences and expert workshops.
USTDA said its funding will create opportunities for US industry to be a preferred partner for “building the Philippines’ energy future”.
USTDA-funded programming is carried out by US companies. The agency has from interested US firms that are qualified based on experience and capability to perform technical assistance related to the deployment of an SMR power plant by MGEN in the Philippines. The deadline for proposals is 23 February.
“USTDA is proud to lead the US government’s efforts to develop strategic infrastructure projects that both our countries have prioritised,” said Thomas Hardy, USTDA’s Deputy Director. “Safe, secure, and safeguarded nuclear solutions offer tremendous potential for energy independence. Our funding will advance Meralco’s nuclear energy programme, strengthen America’s nuclear industrial base and position trusted US technologies as the foundation for the Philippines’ energy future.”
Meralco Chairman Manuel Pangilinan added: “Through the generosity of the US government, we are laying the groundwork for the responsible integration of nuclear into our energy mix through small modular reactors. This offers a safe and responsible pathway towards energy security for generations to come. This grant is the beginning of a long and deliberate journey. Nuclear energy demands rigour and foresight – and this partnership will help us prepare and be guided by world-class expertise. We thank the USTDA for acknowledging the vision, capabilities, and readiness of Meralco – and by extension, the Filipino people – to handle the next great innovation in nuclear energy.”
Technical assistance in evaluating US SMR designs was one of several initiatives related to SMRs announced by the USA on Monday to “pave the way to enhance the Philippines’ energy security, grow its industrial strengths, and meet emerging tech competitiveness goals, like powering and harnessing AI”. Other initiatives include the installation of an SMR control room simulator within the Luzon Economic Corridor to “provide hands-on, realistic training for future reactor operators and technicians to practise plant operations, safety procedures, and emergency scenarios that create a qualified nuclear workforce, strengthen safety culture, and accelerate readiness for SMR deployment”. Another initiative will provide funding through the US-led Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) programme to establish partnerships between Philippine universities and Texas A&M University and King’s College London to support the development and integration of new SMR curricula into engineering programmes in the Philippines. The project will connect professors and senior academics from Philippines to their US and UK counterparts.
The governments of the Philippines and the USA formalised an Agreement for Cooperation in Peaceful Uses of Nuclear Energy, commonly known as a 123 Agreement, during the Asia-Pacific Economic Cooperation Summit in November 2023. This agreement, which went into effect in July 2024 following US congressional approval, established a legal framework for the export of nuclear materials, equipment, and technology from the USA to the Philippines.
Philippines’ nuclear plans
In response to the 1973 oil crisis, the Philippines decided to build the two-unit Bataan plant. Construction of Bataan 1 – a 621 MWe Westinghouse pressurised water reactor – began in 1976 and it was completed in 1984 at a cost of USD460 million. However, due to financial issues and safety concerns related to earthquakes, the plant was never loaded with fuel or operated. The plant has since been maintained. There have been several proposals over the years to either start it up or convert it to a gas-fired plant.
In March 2022, then President Rodrigo Duterte signed an executive order that outlined the government’s position for the inclusion of nuclear energy in the Philippines’ energy mix, taking into account economic, political, social and environmental objectives. The country aims to have its first nuclear power plants operational by 2032, with an initial capacity of 1,200 MW, expanding to 2,400 MW by 2035 and reaching 4,800 MW by 2050.
The Philippine Department of Energy released a comprehensive framework in October last year that grants the country’s first nuclear power plant priority dispatch, long-term contracting options, and incentives to accelerate the integration of nuclear energy into the power generation mix. In a circular signed by Energy Secretary Sharon Garin, the US Department of Energy (DOE) formally established the policy foundations for the Philippines’ first commercially developed and operated nuclear power plant, designated as the Pioneer NPP. Under the circular, the department said the Pioneer NPP will be treated as a baseload facility and granted priority dispatch in coordination with the DOE, the Independent Market Operator, and the System Operator, “regardless of the nuclear technology deployed”. It said this “ensures a competitive investment environment for the Pioneer NPP, paving the way for further nuclear developments that will reinforce the country’s long-term energy security”.
