The Department of Energy (DOE) said it has signed an agreement with Masdar, a renewable energy (RE) developer from the United Arab Emirates (UAE), for implementation of a development plan for as much as 1,000 megawatts (MW) of renewable energy projects in the Philippines.
The DOE said in a statement yesterday the agreement operationalizes the Memorandum of Understanding on Energy Transition Cooperation signed between the Philippines and the UAE in November 2024. The deal reached during the Abu Dhabi Sustainability Week eyes the development by Masdar of solar, wind and battery energy storage systems across various regions in the Philippines by 2030.
The capacity of the facility may be scaled up to 10,000 MW within a decade, with an estimated total investment of $15 billion, the DOE said in the statement.
Under the agreement, the DOE will assist Masdar in conducting pre-development activities, technical studies, securing the necessary rights, gathering project information and obtaining
all required regulatory approvals and permits. The energy agency will also facilitate the company’s applications for investment incentives and tax exemptions.
Meanwhile, Masdar will take the lead in project development, overseeing commercial, technical, financial and environmental workstreams.
The DOE added that Masdar will develop the project at no cost to the government. More details will be reported when made available.
“Under President Marcos Jr.’s leadership, the Philippines is integrating RE into its energy mix on an unprecedented scale, ensuring energy security while fostering sustainable economic growth and environmental stewardship. This collaboration sets a new benchmark for energy transition in the region,” DOE Secretary Raphael Lotilla said.
On behalf of Masdar, Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Masdar chairman, said the deal “will create jobs, drive low-carbon socio-economic progress and expand global RE capacity in line with the UAE Consensus.”
The agreement was signed by DOE Undersecretary Rowena Cristina Guevara on behalf of the DOE and Mohamed Jameel Al Ramahi, Masdar chief executive officer, in the presence of Lotilla and Al Jaber.
This collaboration also marks Masdar’s entry into the Philippines’ RE sector as the company considers Southeast Asia a key investment destination. The UAE energy investor and developer also has projects in Indonesia and Malaysia.
“Beyond enhancing energy security and reducing reliance on fossil fuels, this collaboration will deliver significant economic benefits to the country, creating opportunities for job generation, drive technology transfer and empowering the local workforce with advanced skills in clean energy development. Together, we are positioning the Philippines as a regional leader in sustainable energy,” Lotilla added.
The Philippine government seeks to increase RE’s share in the power generation mix to 35 percent by 2030, and raise it further to 50 percent by 2050.
Based on the latest data from the DOE, as of end-October 2024, the total share of RE installed on-grid capacity comprised of hydro, geothermal, wind, biomass and solar technologies were at 9,361 MW, equivalent to 31.5 percent of the country’s power supply mix.