Manila Electric Co. (Meralco) is facing delays in securing a $2.7-million grant from the US Trade and Development Agency (USTDA) for a feasibility study on small modular reactors (SMRs) over the US government shutdown, according to a company executive.
The formal signing of the grant, which has been technically approved by both parties, was postponed because the US officials required to travel to the Philippines to finalize the agreement are unable to do so, said Meralco chief operating officer Ronnie Aperocho.
“We’re supposed to formally sign the draft, but the US is still in shutdown, so the people who should have traveled to the Philippines to finalize [the signing] are unable to do so,” Aperocho said.
“Maybe it can only move forward when everything is okay. We’re hoping that everything will be fixed soon so that the grant will run. The drawback is not major,” he said.
The USTDA grant is intended to help Meralco launch the SMR study as the company looks toward nuclear power generation to support the government’s clean energy and energy security goals.
Aperocho said Meralco is also preparing for the Department of Energy’s (DOE) plan to begin accepting nuclear proposals in 2026.
“We’ve been very aggressive, we have to comply with the timeline set by the Department of Energy,” he said.
The company, however, will first review the “liabilities and incentives” of nuclear power to establish the business case and expected capital expenditure.
He said SMRs, which have a capacity of between 300 megawatts (MW) and 500 MW, are ideal due to their size and technology. However, he cautioned that the PhilATOM bill requires the country of origin to demonstrate that an SMR has been operating for at least two years without incident before it can be adopted in the Philippines.
Meralco has already begun laying the groundwork for nuclear integration. In 2023, it launched FISSION, a scholarship and training program for Filipino nuclear engineers, sending scholars to the United States and China.
The company began its Nuclear Energy Strategic Transition (NEST) program in 2024 to support the government’s energy security goals.
In line with the Philippine Energy Plan 2023-2050, the country aims for a nuclear capacity of at least 1,200 MW by 2032, 2,400 MW by 2035 and 4,800 MW by 2050.
