MANILA ELECTRIC CO. (Meralco) plans to begin a study with the United States Trade and Development Agency (USTDA) on the adoption of small modular reactors (SMR) within the first quarter, the company said in a disclosure to the local bourse on Monday.
“The study is expected to commence during the first quarter and is expected to be completed by the fourth quarter this year,” it said.
The power distributor is set to issue a request for proposal this month to select a contractor that will conduct the feasibility study.
Meralco earlier secured a $2.7-million (P160 million) grant from USTDA to fund the assessment of SMR deployment in the Philippines.
The initiative forms part of Meralco’s Nuclear Energy Strategic Transition (NEST) program, under which the company has been carrying out pre-feasibility work and partnership discussions to evaluate nuclear technologies suitable for local conditions.
The study supports the Department of Energy’s (DoE) goal of incorporating at least 1,200 megawatts (MW) of nuclear power into the country’s energy mix by 2032 as part of efforts to diversify supply and reduce reliance on fossil fuels.
Starting in April, Meralco said it would begin identifying potential sites suitable for SMR facilities, in coordination with government agencies such as the DoE and Philippine Nuclear Research Institute. Site selection will consider technical, environmental and regulatory factors.
SMRs are designed to generate up to 300 MW each and can be built in a shorter timeframe compared with conventional large-scale nuclear power plants. Proponents say their smaller size and modular construction could allow more flexible deployment.
Aside from the technical study, Meralco said it would carry out stakeholder engagement and consultations, capability-building initiatives and support work related to the country’s legal and regulatory frameworks governing nuclear energy.
By the fourth quarter, the company expects to produce a shortlist of potential sites for submission to the DoE and Philippine Atomic Energy Regulatory Authority, the recently established independent regulator overseeing nuclear and radiation-related activities.
“The NEST program is in its preparatory phase, thus no material impact is expected on the company’s business, operations, and financials at this juncture,” Meralco said.
Meralco is the country’s biggest private electric distribution utility, serving 39 cities and 72 municipalities. It also has interests in power generation through wholly owned units and equity stakes.
Its controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
