KHNP, AboitizPower to cooperate on nuclear energy

The MoU was signed on 31 July at KHNP's headquarters in Gyeongju, South Korea, by Choi Il-kyung, Head of Business Operations at KHNP, and Carlos Ramon Aboitiz, Head of AboitizPower.

Under the MoU, AboitizPower and KHNP agreed to actively cooperate on the exchange of information related to nuclear technology, cooperation in preliminary feasibility studies for new nuclear power plants, and the operation of training, seminars, and working-level consultative bodies. The agreement is exploratory and non-exclusive, and creates no binding obligations for either party.

"Nuclear energy is complex and highly regulated, and any future role for it must be grounded in rigorous technical assessment and strong regulatory oversight," Aboitiz said. "We see significant value in learning from KHNP's decades of experience and we look forward to working alongside the Department of Energy to responsibly assess nuclear energy's role in the country's energy future."

AboitizPower is one of the Philippines' leading private energy companies with a diversified portfolio spanning thermal, hydropower, solar and geothermal generation, as well as energy storage systems.

Choi added: "It is meaningful that we have laid the foundation for cooperation in the Philippines' nuclear power business through the signing of this MoU. Based on the unrivalled experience and technological capabilities accumulated by KHNP through the construction and operation of nuclear power plants both domestically and internationally, we will work closely with AboitizPower to contribute to the Philippines' energy transition."

"Today's signing of the MoU between AboitizPower and KHNP marks a significant milestone," said Secretary Garin. "The transition toward a secure, clean, and reliable energy future cannot be achieved by government alone. It requires strong public-private coordination and the exchange of best practices across borders with experienced industry leaders such as KHNP."

Philippines' nuclear plans

In response to the 1973 oil crisis, the Philippines decided to build the two-unit Bataan plant. Construction of Bataan 1 - a 621 MWe Westinghouse pressurised water reactor - began in 1976 and it was completed in 1984 at a cost of USD460 million. However, due to financial issues and safety concerns related to earthquakes, the plant was never loaded with fuel or operated. The plant has since been maintained. There have been several proposals over the years to either start it up or convert it to a gas-fired plant.

Under an MoU on cooperation in the field of energy signed in October 2024 between KHNP and the Philippine Department of Energy, KHNP agreed to conduct a feasibility study to evaluate the possible start-up of the mothballed Bataan plant.

In March 2022, then President Rodrigo Duterte signed an executive order that outlined the government's position for the inclusion of nuclear energy in the Philippines' energy mix, taking into account economic, political, social and environmental objectives. The country aims to have its first nuclear power plants operational by 2032, with an initial capacity of 1,200 MW, expanding to 2,400 MW by 2035 and reaching 4,800 MW by 2050.

The Philippine Department of Energy released a comprehensive framework in October last year that grants the country's first nuclear power plant priority dispatch, long-term contracting options, and incentives to accelerate the integration of nuclear energy into the power generation mix. In a circular signed by Energy Secretary Sharon Garin, the Department of Energy (DOE) formally established the policy foundations for the Philippines' first commercially developed and operated nuclear power plant, designated as the Pioneer NPP. Under the circular, the department said the Pioneer NPP will be treated as a baseload facility and granted priority dispatch in coordination with the DOE, the Independent Market Operator, and the System Operator, "regardless of the nuclear technology deployed". It said this "ensures a competitive investment environment for the Pioneer NPP, paving the way for further nuclear developments that will reinforce the country's long-term energy security".

in February, the US Trade and Development Agency announced USD2.7 million in funding for technical assistance to the Philippines' largest private electric distribution utility Manila Electric Company (Meralco) to evaluate US small modular reactor (SMR) designs and develop an implementation roadmap for the Philippines' first SMR nuclear power plant. USTDA's assistance will provide Meralco a comprehensive technical review of advanced US-made SMR reactor designs. The findings will enable Meralco to develop a shortlist of US technology providers for its future procurement needs.

In March, KHNP, the Export-Import Bank of Korea and Meralco signed a tripartite MoU for cooperation in developing nuclear power plants in the Philippines.