Manila Electric Company (Meralco) has signed a memorandum of understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and the Export-Import Bank of Korea (KEXIM) to cooperate with each other in the development of nuclear energy initiatives within the Philippines.

The partnership centers around Meralco’s Nuclear Energy Strategic Transition (NEST), which is a program that centers on incorporating nuclear power into the country’s energy mix. 

The formal agreement was signed during the Philippines-Korea Business Forum held on March 4 in Pasay City, with Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan, KHNP Chief Executive Officer Dae Wook Chun, and KEXIM Chairman and Chief Executive Officer Kiyeon Hwang present during the signing.

Under the agreement, the parties will now coordinate in aspects such as reactor design and engineering discussions, exchange in technical information and knowledge sharing, as well as improving the Philippine’s legal and institutional frameworks on nuclear power.

Pangilinan said that nuclear energy can play a key role in strengthening the country’s energy grid while also diversifying the utility’s portfolio. 

“Nuclear energy is a way to diversify our portfolio and reinforce energy security, while offering a degree of insulation from fuel market fluctuations,” he said.

To help develop local capability, the three entities agreed to partake in employee-exchange, knowledge sharing, and training programs to develop nuclear expertise within the Philippine work force itself. The collaboration may also extend to early-stage project development activities such as public acceptance initiatives, project planning, and site selection studies.

In addition, the parties will work together on business and financial modeling to support potential nuclear projects in the Philippines. As part of the effort, KEXIM will explore possible financing structures and credit facilities that could support Meralco’s prospective nuclear developments.

Pangilinan said the partnership with the Korean firms would allow Meralco to evaluate nuclear technologies and project models with the benefit of global expertise.

“Partnering with KHNP and KEXIM gives us access to proven global expertise and enables us to study technology, business models, and financing options with greater depth,” he said.

He described the agreement as an important step in studying the role nuclear energy could play in the country’s future power system.

“This MOU marks an early but consequential step in this important process,” Pangilinan concluded.

How could nuclear energy contribute to strengthening the Philippines’ long-term energy security?

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