Philippines and UAEs Masdar Forge $15 Billion Renewable Energy Partnership
On January 16, 2025, the Philippines and Masdar, the United Arab Emirates' state-owned renewable energy company, signed a landmark $15 billion agreement to develop a series of renewable energy projects across the archipelago. This ambitious initiative aims to generate up to 1 gigawatt (GW) of clean energy by 2030, significantly contributing to the Philippines' efforts to diversify its energy sources and reduce reliance on fossil fuels.
The collaboration focuses on the development of solar and wind energy projects, complemented by advanced battery energy storage systems to ensure a stable and reliable power supply. This strategic move aligns with the Philippine government's objective to increase the share of renewable energy in the national power mix to 35% by 2030 and 50% by 2040. As of 2022, renewable sources accounted for 22.8% of the country's energy consumption, indicating substantial room for growth in the sector.
Energy Secretary Raphael Lotilla emphasized the transformative potential of this partnership, stating that it marks a significant step forward in the nation's renewable energy journey. Masdar's CEO, Mohamed Jameel Al Ramahi, echoed this sentiment, expressing enthusiasm for leveraging the company's expertise to support the Philippines in achieving its ambitious energy goals.
In addition to the initial 1 GW target, the project includes plans to scale up capacity to 10 GW by 2035, positioning the Philippines as a leading renewable energy hub in Southeast Asia. To further stimulate investment in the sector, the Philippine government has announced an upcoming auction of renewable energy projects, offering 300 megawatts (MW) of impounding hydro, 4,250 MW of pumped storage hydro, and 100 MW of geothermal energy. Notably, the country has also amended its regulations to allow full foreign ownership in renewable energy projects, aiming to attract more international investors and accelerate the development of sustainable energy infrastructure.
This partnership with Masdar signifies a pivotal advancement in the Philippines' commitment to sustainable development and energy security, reflecting a broader global trend toward embracing clean and renewable energy solutions.
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