On 31 July, in the glass-walled conference room at Korea Hydro & Nuclear Power’s (KHNP) headquarters in Gyeongju, South Korea, Carlos Ramon Aboitiz and Choi Il-kyung signed a Memorandum of Understanding (MoU) that could mark a pivotal shift in the Philippines’ energy landscape. The agreement between AboitizPower, one of the Philippines’ leading private energy companies, and KHNP opens the door for closer cooperation in nuclear energy development. This MoU comes at a time when the country is re-examining nuclear power as part of its broader energy transition goals, though the path ahead remains cautious and complex.
From blueprint to blueprint
The MoU’s significance is underscored by the lingering presence of the Bataan nuclear plant, a 621 MWe Westinghouse pressurized water reactor constructed in the 1980s but never activated. Financial challenges and concerns over seismic risks left the facility unfinished. However, in October 2024, KHNP was already tasked with assessing the feasibility of restarting it. The recent MoU with AboitizPower adds yet another potential chapter to the Philippines’ long-standing nuclear ambitions.
The agreement is exploratory in nature and does not impose any binding obligations. Instead, it allows both parties to engage in knowledge exchange, preliminary feasibility studies for new nuclear projects, and technical training through seminars and consultative meetings. Carlos Ramon Aboitiz emphasized the value of KHNP’s decades of expertise, particularly its experience in constructing and operating nuclear plants both domestically and internationally. For AboitizPower, the partnership is an opportunity to learn and prepare for nuclear's potential role in the country's energy future.
Energy transition in a post-oil crisis world
The Philippines' interest in nuclear energy dates back to the 1973 oil crisis, when the Bataan plant was first conceived as a way to reduce dependence on imported oil. Decades later, nuclear energy returned to the spotlight in March 2022 when former President Rodrigo Duterte issued an executive order supporting its inclusion in the national energy mix. This move reflected a broader strategy that seeks to balance economic growth, environmental sustainability, and energy security.
The country now aims to have its first nuclear power plants operational by 2032, with a target capacity of 1,200 MW. This is expected to grow to 2,400 MW by 2035 and eventually to 4,800 MW by 2050. The Philippine Department of Energy has outlined a comprehensive framework to support this transition. In October 2024, the department established policy foundations for the country's first commercially developed nuclear power plant, known as the Pioneer NPP. This framework includes priority dispatch rights, long-term power purchase agreements, and other incentives to attract investment and build momentum for the nuclear sector.
International players and local partners
KHNP is not the only foreign entity exploring nuclear cooperation in the Philippines. The USTDA funding will support Meralco in evaluating U.S.-based small modular reactor (SMR) designs and developing an implementation roadmap for the country's first SMR.
At the same time, KHNP, the Korean Export-Import Bank, and Meralco signed a tripartite MoU in February to expand their collaboration in developing nuclear power in the Philippines. This agreement adds another layer of international cooperation, with the USTDA-assisted SMR project offering an alternative technological path for the country to consider.
Meralco's evaluation of SMR designs is part of a broader effort to explore diverse nuclear options while KHNP works through the AboitizPower partnership. The USTDA funding helps Meralco identify potential U.S. vendors, which will be crucial for future procurement and implementation plans. However, the MoU between AboitizPower and KHNP stands out for its direct focus on integrating Korean nuclear expertise into the Philippine private sector. It is not just about importing reactors—it is about building a local industry capable of managing the complexities of nuclear energy, including training engineers, developing regulatory frameworks, and ensuring public safety and trust.
Energy Secretary Sharon Garin welcomed the MoU, emphasizing that the Philippines cannot achieve its energy transition goals without strong public-private partnerships. The collaboration with KHNP, she said, aligns with the need to exchange best practices with experienced international partners. Her comments reflect the government’s broader vision of engaging the private sector and foreign stakeholders to build a secure, clean, and reliable energy future.