Meralco taps Korean firms for nuclear energy

Manila Electric Co. (Meralco) has expanded its partnership with South Korean firms, with a new pact meant to chart technical and financial pathways for the deployment of nuclear power assets in the Philippines.

The biggest power distributor in the country, which also runs a strong electricity generation portfolio, said it had inked a memorandum of understanding with Korea Hydro & Nuclear Power (KHNP) and the Export-Import Bank of Korea (KEXIM).

Its chair and CEO Manuel Pangilinan said in a statement Monday that getting the two companies’ support provides Meralco “access to proven global expertise…”

KHNP, a subsidiary of Korea Electric Power Corp., is the leading power generation company in South Korea.

KEXIM, on the other hand, is a state-owned financial export credit agency and financing unit.

Under their deal, the three groups will boost the dedicated workforce for this venture through training programs, employee exchanges and knowledge-sharing activities to back long-term operational capability.

The parties will also assess the feasibility of planned nuclear plants, including site analysis and public acceptance efforts.

In addition, the Korean government-backed financial institution will help explore options for funding Meralco’s possible developments with South Korean firms.

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Diversification

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

“Complementary to the Philippine government’s efforts to lay the groundwork for its nuclear power program, Meralco is assessing how nuclear [energy] can best contribute to our long-term strategy,” he added.

Meralco is the dominant player in the government’s anticipated nuclear market.

In February, the group finally received a $2.7-million grant from the United States Trade and Development Agency to finance its feasibility study on tapping small modular reactors, which have a capacity ranging from 300 to 450 megawatts.