Manila Electric Co. (Meralco) is reviving talks with a United States (US) nuclear startup to advance its small modular reactor ambitions, signaling a renewed push into alternative energy despite local opposition and regulatory hurdles.

Ronnie Aperocho, Meralco executive vice president and chief operating officer, said the utility is scheduled to hold discussions with Utah-based Valar Atomics in the coming days. The move comes a year after the country’s largest power distributor first signaled its intent to enter the domestic nuclear energy space.

While Valar Atomics is a primary focus due to recent technological developments, Meralco is keeping its options open. Aperocho noted that the company is willing to evaluate competing small modular reactor (SMR) technologies rather than tethering itself to a single partner.

The Philippines is currently looking to nuclear energy to bolster its fragile power grid and reduce dependence on imported fossil fuels, which have left consumers vulnerable to global price shocks. However, Meralco is preaching caution regarding the adoption of unproven systems.

The utility does not want the Philippines to serve as a testing ground for experimental technology, Aperocho said, emphasizing that any potential partner must first demonstrate a clear operational track record.

Meralco’s nuclear roadmap is currently being funded in part by a $2.8 million grant from the US Trade and Development Agency, which was awarded to its power generation arm, Meralco PowerGen Corp. The capital is earmarked for feasibility studies, with research and development slated to begin later this year.

Aperocho outlined four pillars guiding the company's nuclear strategy: regulatory readiness, safety and public acceptance, cost competitiveness against traditional baseload and renewable options, and technology maturity.

Valar Atomics earlier secured a memorandum of understanding with the Philippine Nuclear Research Institute and EoS Organization to develop reactors utilizing modular designs and advanced cooling systems. The US firm chose the Philippines for its experimental test reactor after facing stringent regulatory hurdles in the US in 2025.

The startup’s initial project, dubbed “Ward One,” is a 100-kilowatt micro-reactor intended for the University of the Philippines Diliman campus in Quezon City. The prototype is designed as a standalone test facility and will not be connected to the national grid.

The plan has already drawn friction. Environmental advocacy group Greenpeace Philippines staged protests earlier this year, citing safety risks and questioning Valar Atomics’ lack of an industrial track record as a young startup.