Phl-UAE deal to drive $15-B RE investments

The Philippines, rich in clean energy resources, is set to attract around $15 billion, or approximately P810 billion, in investments as it begins developing one gigawatt (GW) of renewable energy (RE) projects in partnership with the United Arab Emirates (UAE).

The Department of Energy (DOE) confirmed on Thursday that a landmark agreement with Masdar, a UAE-based leader in RE development, is now up for implementation after an agreement to operationalize the Memorandum of Understanding on Energy Transition was signed last Wednesday.

The two countries plan to install up to 1 GW of solar, wind, and battery energy storage systems nationwide by 2030.

The goal is to scale this up to 10 GW within a decade. The partnership is expected to attract approximately $15 billion in investments.

“Building on the longstanding ties between the Philippines and the UAE, and the recent Energy Transition Cooperation, this partnership with Masdar marks a transformative step in our RE journey,” Energy Secretary Raphael Perpetuo Lotilla said.

“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.”

The DOE will assist Masdar with pre-development activities, securing rights, conducting technical studies, and obtaining necessary approvals. Likewise, it will help facilitate Masdar’s applications for investment incentives and tax benefits.

Masdar, on the other hand, will lead the project development, handling commercial, technical, financial, and environmental aspects.

New Chapter

His Excellency Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, welcomed the agreement, calling it a new chapter in the relationship between the UAE and the Philippines.

“By leveraging the UAE’s world-class expertise in RE and the Philippines’ abundant natural resources, this partnership will create jobs, drive low-carbon socio-economic progress, and expand global RE capacity.”

Meanwhile, Masdar CEO Mohamed Jameel Al Ramahi described the agreement as a significant expansion of the company’s activities in Southeast Asia.

“With our proven success in implementing large-scale RE projects across the region and worldwide, we look forward to utilizing our expertise to support the Philippines in meeting its ambitious energy goals.”

Masdar’s entry into the local RE sector continues its expansion in Southeast Asia, where it has already developed major projects.

The company built Indonesia’s largest floating solar facility, the 145 megawatt (MW) Cirata Floating Solar PV Plant, and invested in geothermal energy in 2023 by partnering with Pertamina Geothermal Energy.

In 2023, Masdar also signed a key agreement with the Malaysian Investment Development Authority to develop 10 GW of clean energy projects across Malaysia.

The DOE has been working to increase the share of RE in the national grid’s energy mix. This year’s Green Energy Auction 3, scheduled for 11 February, will offer 300 MW of impounding hydro, 4,250 MW of pumped storage hydro, and 100 MW of geothermal energy.

A new round of green energy auctions, which will integrate clean energy technologies with energy storage systems and offshore wind projects, is also set to launch later in 2025.