MGEN Secures $2.8M Grant for Nuclear Feasibility Study

Meralco PowerGen Corp. (MGEN), the power generation arm of Manila Electric Company, has secured a $2.8-million (₱162 million) grant from the United States Trade and Development Agency (USTDA) to study the potential deployment of small modular reactors (SMRs) in the Philippines—a move that signals a significant step toward reviving nuclear power in the country’s long-term energy plans.

The funding will support a comprehensive feasibility study examining viable SMR technologies, potential sites for development, and a roadmap outlining how a nuclear project could be delivered within the country’s existing regulatory and commercial landscape. The study is scheduled to begin in 2026.

Grant Signals Renewed Nuclear Ambitions

The award places MGEN at the center of the Philippines’ nuclear conversation, a debate that has resurfaced in recent years as energy prices fluctuate and demand continues to rise across the archipelago.

USTDA Deputy Director Thomas R. Hardy said the grant reflects broader strategic cooperation between Washington and Manila.

“USTDA is proud to lead the U.S. government’s efforts to develop strategic infrastructure projects that both our countries have prioritized. 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,” Hardy said.

The agency’s support also opens the door for U.S. nuclear technology providers to participate in the study and possibly in future deployment, with American firms invited to submit technical assistance proposals ahead of the project’s launch.

What the Study Will Cover

The SMR Adoption Study will focus on three core areas:

• Technical assessment of available small modular reactor designs suited to Philippine conditions;
• Preliminary site identification for a potential plant;
• Development of an implementation roadmap covering commercial structure, financing options, and regulatory requirements.

The expected output is a shortlist of reactor technologies that could match the country’s grid capacity and geographic realities, along with a phased timeline detailing what would be required to move from study to construction and operation.

Unlike traditional nuclear plants, which are massive, capital-intensive projects, SMRs are designed to be smaller, factory-built units that can be assembled on-site. Proponents argue that their modular design reduces upfront costs and construction risks while offering steady, round-the-clock “baseload” power.

Meralco’s ‘Long but Necessary Journey’

The initiative forms part of Meralco’s Nuclear Energy Strategic Transition (NEST) program, which positions nuclear as a long-term addition to its generation mix.

Meralco Chairman and CEO Manuel V. Pangilinan described the grant as more than financial assistance.

“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,” Pangilinan said.

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

Energy Security at the Forefront

The Philippines has long grappled with high electricity costs and heavy reliance on imported fossil fuels. As demand increases—driven by population growth, industrial expansion, and digital infrastructure—energy planners face mounting pressure to secure dependable and affordable supply.

Nuclear power, advocates argue, offers a low-carbon option capable of delivering continuous generation, complementing intermittent renewable sources such as solar and wind.

According to USTDA documentation, a so-called Pioneer Nuclear Power Plant would be treated as a baseload facility and granted priority dispatch in coordination with the Department of Energy and grid operators—regardless of the specific nuclear technology chosen. Such treatment would aim to provide investment certainty and accelerate integration into the national grid.

Unanswered Questions on Regulation and Siting

Despite the renewed momentum, significant questions remain unanswered.

No specific locations have been identified publicly for possible SMR deployment. Site selection will inevitably draw scrutiny, particularly in a country prone to seismic activity and typhoons. Environmental safeguards, emergency preparedness systems, and waste management frameworks are expected to form critical components of the feasibility review.

Moreover, while the Philippine government has signaled openness to nuclear energy as part of its long-term strategy, the detailed regulatory and legislative architecture required for construction and operation will need to be clarified and, in some cases, strengthened.

The 2026 study marks only the earliest stage. Even under an accelerated timeline, commercial operation would likely be years away, requiring additional government approvals, financing arrangements, and public consultations.

A Strategic Energy Bet

The $2.8-million grant represents a relatively modest sum in the context of multi-billion-dollar power infrastructure projects. Yet it carries weight as a political and strategic marker, underscoring closer U.S.–Philippine cooperation in energy development and signaling serious private-sector intent to explore nuclear power.

For Meralco, the study could determine whether nuclear energy becomes a cornerstone of its future portfolio or remains an aspiration on paper. For Filipino consumers, the promise lies in whether nuclear power can ultimately translate into more stable prices and a more secure grid.

The feasibility study’s findings, once released, are likely to shape the next chapter of the country’s decades-long, and often contentious, nuclear narrative.