AboitizPower Corporation (AP.PS), one of the Philippines’ leading energy companies, has signed a landmark memorandum of understanding with state-owned South Korea Hydro & Nuclear Power (KHNP) (015760.KS) to explore nuclear energy deployment.

The agreement, signed at KHNP’s headquarters in Gyeongju by KHNP Head of Business Operations Choi Il-kyung and AboitizPower Head Carlos Ramon Aboitiz, lays the ground for exchanging technical information and undertaking joint preliminary feasibility studies for new nuclear installations in the Philippines, according to World Nuclear News.

While the exploratory agreement creates no legally binding obligations, it links the Philippines' private power sector directly with a Korean state giant that boasts an unmatched track record in domestic and international nuclear construction.

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

Choi added that the MoU creates a solid foundation for Korean involvement in the Philippines' nuclear market. “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,” he said.

Philippine Energy Secretary Sharon Garin praised the deal as a vital public-private milestone. “The transition toward a secure, clean, and reliable energy future cannot be achieved by government alone,” Garin said. “It requires strong public-private coordination and the exchange of best practices across borders with experienced industry leaders such as KHNP.”

Reassessing Bataan and long-term targets

Manila’s modern nuclear drive is heavily rooted in a desire to fix past mistakes—specifically the $460mn Bataan Nuclear Power Plant (BNPP). Built by Westinghouse in response to the 1973 oil crisis, the 621-MWe pressurised water reactor was completed in 1984 but never loaded with fuel due to political upheaval, financial strain and seismic safety fears following the fall of the Marcos regime.

The mothballed BNPP facility has cost the Philippine taxpayer millions in maintenance since, but modern technology and pressing energy deficits have put its revival back on the agenda. In October 2024, KHNP signed a separate cooperation MoU with the Philippine Department of Energy (DOE) to execute a comprehensive feasibility study on starting up the BNPP, WNN reports.

Reports from the Philippine News Agency indicate that then, but now disgraced South Korean President Yoon Suk Yeol and Philippine President Ferdinand Marcos Jr. personally witnessed the state-level agreement signing in Manila. Under the deal, KHNP agreed to bear the complete financial cost of the two-phase assessment to inspect BNPP's structural condition. Notably, KHNP operates the Kori nuclear power complex in Busan, which utilises design configurations virtually identical to the Bataan facility.

This corporate and state alignment follows Executive Order 164, signed by former President Rodrigo Duterte in March 2022, which formally integrated nuclear power into the national energy mix. Manila’s official policy roadmap sets an ambitious target to deploy 1,200 MW of nuclear capacity by 2032, expanding to 2,400 MW by 2035 and reaching 4,800 MW by 2050. To govern this emerging sector, the Philippine Congress has simultaneously advanced legislation to establish an independent regulatory body known as PhilATOM.

To support the rapid commercial rollout, the Philippine Department of Energy (DOE) released a policy framework establishing rules for the country’s first commercially developed nuclear power plant, designated as the Pioneer NPP. Under a circular signed by Garin, the Pioneer NPP will be classified as a baseload facility and granted priority dispatch in grid scheduling, along with long-term contracting privileges and financial incentives regardless of the nuclear technology chosen.

Broader international partnerships

South Korea is not the only foreign player positioning itself for Manila’s nuclear buildout. The US has also stepped up its diplomatic and technical backing, aiming to export advanced small modular reactor (SMR) designs to Southeast Asia.

In February, the US Trade and Development Agency (USTDA) announced $2.7mn in grant funding for Manila Electric Company (Meralco), the country’s largest private distribution utility, according to World Nuclear News. The technical assistance grant will fund comprehensive assessments of US SMR technologies and help Meralco build an implementation roadmap for the Philippines' first SMR installation. This initiative follows the entry into force of the landmark 123 Agreement between Manila and Washington, establishing the legal basis for nuclear equipment and technology exports.

Meralco is keeping its options open across both sides of the Pacific. In March, KHNP, the Export-Import Bank of Korea and Meralco inked a tripartite MoU to collaborate on developing nuclear power plants in the archipelago.

With nuclear momentum accelerating across policy, corporate and diplomatic tracks, the Philippines is moving aggressively to address its structural power deficits. Partnering with KHNP gives Manila a proven technical ally as it weighs the resurrection of BNPP alongside next-generation SMR deployments to anchor its long-term clean energy transition. Public-private educational partnerships supported by AboitizPower and international institutions are simultaneously establishing specialised nuclear engineering curricula and simulator facilities to build the local workforce required to operate these future reactors safely.