By John Victor D. Ordoñez, Reporter
MANILA Electric Co. (Meralco) is closely monitoring Ultra Safe Nuclear Corp.’s progress in securing US Nuclear Regulatory Commission approval for micromodular nuclear reactors, as it could significantly advance their partnership in the Philippines, its chief operating officer (COO) said.
“There have been delays in securing regulatory approval for Ultra Safe Nuclear Corp., and understandably so because this is a new technology,” Ronnie L. Aperocho, Meralco’s executive vice-president and COO, told BusinessWorld in mixed English and Filipino on the sidelines of a Public Services Committee hearing at the Senate on Monday.
“Hopefully by early next year, there will be clarity (to these delays).”
Meralco earlier signed a deal with the US-based Ultra Safe for a pre-feasibility study on micromodular reactors.
The power distributor last month inked a strategic partnership agreement with South Korea’s Doosan Enerbility Co., Ltd. to explore collaborations on developing low-carbon energy projects and the rehabilitation of the mothballed Bataan Nuclear Power Plant (BNPP).
The companies will also study the use of small modular reactors to help meet the country’s growing power demand and achieve long-term energy security.
At the hearing, Senator and Public Services chairperson Rafael T. Tulfo assigned bills seeking to extend Meralco’s franchise for another 25 years to technical working groups composed of officials from the Department of Energy and Meralco to refine the measures.
One of these bills was filed by Senator Juan Miguel F. Zubiri, which seeks to allow Meralco to continue to construct, operate, and maintain its electric distribution systems in areas such as Metro Manila, Bulacan, Cavite, Laguna, Batangas, and Rizal.
The power distributor delivers electricity to at least 7.75 million Filipinos, making it the main electricity supplier to Metro Manila and nearby areas.
The House of Representatives earlier this month approved on final reading a bill seeking the same franchise renewal, including a provision that will allow Meralco’s franchise to be effective four years ahead of its initial concession’s expiry.
Mr. Aperocho said that Meralco is hoping to have its franchise extended by Congress by early next year to fast-track its plans for capital expenditure infusion for its digitalization efforts.
“We are heavy on capital expenditure infusion to digitalize the grid, undergrounding…” he said.
“Kung alam mo kasi franchise mo for the next 25 years, lahat ng investment mo buhos mo na (If you know that your franchise is secured for the next 25 years, you can pour in all your investments),” he added.
Philippine President Ferdinand R. Marcos, Jr. and South Korean president signed a deal to conduct a feasibility study on the rehabilitation of the mothballed BNPP. The Department of Energy and Korea Hydro & Nuclear Power Co., Ltd. agreed to hold a comprehensive technical and economic feasibly study on the plant.
The Philippines is hard-pressed to find other sources of indigenous energy as the Malampaya gas field, which supplies a fifth of its power requirements, nears depletion.
The gas field is expected to run out of easily recoverable gas by 2027.
Manila plans to raise the share of renewable energy in the country’s energy mix to 35% by 2030 and to 50% by 2040 from 22% now.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.