The United Arab Emirates’ state-owned energy firm, Masdar, has entered the Philippine renewable energy market by signing a $15 billion agreement to develop solar, wind, and battery energy storage systems. This initiative aims to deliver up to 1 gigawatt (GW) of clean power by 2030, with plans to scale up to 10 GW by 2035.
Philippine Energy Secretary Raphael Lotilla described the partnership as a transformative step in the nation’s renewable energy journey, emphasizing its alignment with the country’s goals to reduce reliance on fossil fuels and increase the share of clean energy in its power mix.
Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi, expressed enthusiasm for supporting the Philippines in meeting its ambitious energy targets, highlighting the company’s expertise in implementing large-scale renewable energy projects globally.
The Philippines, which imports a significant portion of its fuel needs, aims to raise the share of renewable energy in its power mix to 35% by 2030 and 50% by 2040. As of 2022, renewables accounted for 22.8% of the country’s energy mix.
To further boost renewable energy development, the Department of Energy plans to auction 300 megawatts (MW) of impounding hydro, 4,250 MW of pumped storage hydro, and 100 MW of geothermal energy projects as part of its green energy auction program. Additionally, the Philippines has allowed full foreign ownership in the renewable energy sector to attract more investors.
This collaboration follows the signing of a Memorandum of Understanding on Energy Transition Cooperation between the Philippines and the UAE in November 2024, during President Ferdinand R. Marcos Jr.’s official working visit to the Middle Eastern country.
Masdar’s entry into the Philippine market expands its growing portfolio in Southeast Asia, which includes projects like the Cirata Floating Solar PV plant in Indonesia and various clean energy initiatives in Malaysia. Globally, Masdar aims to achieve a renewable energy capacity of 100 GW and produce 1 million tonnes of green hydrogen annually by 2030.
The partnership is expected to create jobs, drive low-carbon socio-economic progress, and set a new benchmark for energy transition in the region. By leveraging the UAE’s expertise in renewable energy and the Philippines’ abundant natural resources, the agreement aims to contribute significantly to global renewable energy capacity.
Philippine Trade Undersecretary Ceferino Rodolfo noted that the collaboration aligns with the country’s strategy to position itself as a smart and sustainable hub for manufacturing and services in Southeast Asia. He emphasized that Masdar’s planned renewable projects would complement infrastructure development initiatives within the Luzon Economic Corridor, including Subic Bay, Clark, Manila, and Batangas.
The agreement underscores the Philippines’ commitment to integrating renewable energy into its energy mix on an unprecedented scale, enhancing energy security while fostering sustainable economic growth and environmental stewardship. With Masdar’s support, the Philippines is setting a new benchmark for energy transition in the region.
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This article first appeared on Greenlogue and is brought to you by Hyphen Digital Network
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