Nuclear power is edging closer to entering the country’s energy mix, with Manila Electric Co. (Meralco) securing funding to assess its viability.

Meralco, through its unit Meralco PowerGen Corp. (MGEN), has secured a $2.8 million grant, equivalent to approximately P162 million, from the United States Trade and Development Agency (USTDA) to fund a study on deploying small modular reactors (SMRs).

The company said on Wednesday that the grant will finance a feasibility study to identify viable SMR technologies and potential sites in the Philippines.

The study, targeted to begin this year, will evaluate reactor designs, shortlist options suited for the local market, and conduct preliminary siting assessments.

It will also produce an implementation roadmap that covers commercial, financial, and regulatory requirements, including timelines and milestones necessary to advance nuclear projects toward development.

“USTDA is proud to lead the U.S. government’s efforts to develop strategic infrastructure projects that both our countries have prioritized,” said Thomas R. 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 program, strengthen America’s nuclear industrial base, and position trusted U.S. technologies as the foundation for the Philippines’ energy future.”

The funding supports Meralco’s Nuclear Energy Strategic Transition program, which seeks to position nuclear power as part of its long-term supply strategy as the Philippines faces rising power demand and limited baseload capacity.

Meralco said the study will also give it access to American nuclear expertise and technical review of advanced SMR technologies, while preparing the company for potential project development.

“Through the good graces of the U.S. government, we are laying the groundwork for responsible integration of nuclear energy into our overall fuel mix. This grant goes beyond funding – it is a demonstration of support from the United States for our vision, our readiness, and our capabilities to lead the adoption of nuclear energy,” Meralco Chairman and CEO Manuel V. Pangilinan said.

“Meralco sees this grant as the beginning of a long but necessary journey. It simply is right for the country to think nuclear, and Meralco is prepared to act as a thought leader in that regard. We look forward to the progress this collaboration will bring – and to a secure energy future we will build together,” he added.

Under the Philippine Energy Plan 2023 to 2050, the country aims to develop at least 4,800 megawatts of nuclear power capacity by 2050.