Abu Dhabi, United Arab Emirates (UAE) – Philippine Energy Secretary Raphael P.M. Lotilla announced a landmark development in the country’s renewable energy sector with the signing of an Implementation Agreement between the Philippine Department of Energy (DOE) and Masdar, a UAE-based global leader in renewable energy. This partnership aims to support the deployment of renewable energy projects across the Philippines.
The Agreement operationalizes the Memorandum of Understanding (MOU) on Energy Transition Cooperation signed between the Philippines and the UAE in November 2024, during the official working visit of President Ferdinand R. Marcos Jr. to the UAE.
Signed yesterday, 15 January 2025, during the Abu Dhabi Sustainability Week (ADSW), the Agreement sets the stage for developing up to 1 gigawatt (GW) of solar, wind and battery energy storage systems (BESS) across various regions in the Philippines by 2030, aiming to scale up to 10 GW within a decade, with an estimated total investment of US$15 billion.
The Agreement was signed by Undersecretary Rowena Cristina L. Guevara on behalf of the DOE, and Masdar Chief Executive Officer (CEO) Mohamed Jameel Al Ramahi, in the presence of Secretary Lotilla and His Excellency Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar.
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 approvals and permits. The DOE will also facilitate Masdar’s applications for investment incentives and tax exemptions. Meanwhile, Masdar will take the lead in project development, overseeing commercial, technical, financial, and environmental workstreams.
“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 renewable energy journey,” said Secretary Lotilla. “Under President Marcos Jr.’s leadership, the Philippines is integrating renewable energy 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.”
For his part, His Excellency Dr. Al Jaber said this partnership marks a new chapter in the longstanding relationship between the UAE and the Philippines. “By leveraging UAE’s world-class expertise in renewable energy and the Philippines’ abundant natural resources, this Agreement will create jobs, drive low-carbon socio-economic progress and expand global renewable energy capacity in line with the UAE Consensus.”
This collaboration marks Masdar’s entry into the renewable sector in the Philippines. Southeast Asia is a key investment destination for Masdar. The company has developed the region’s largest floating solar facility in Indonesia --- the 145 MW Cirata Floating Solar PV Plant --- which is generating enough electricity to power 50,000 homes. In February 2023, it entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy. Masdar also signed a landmark agreement with the Malaysian Investment Development Authority in 2023 for the development of 10 GW of clean energy projects across the country.
Masdar CEO, Al Ramahi welcomed this announcement as a significant expansion of Masdar’s activities in Southeast Asia, a key strategic market in its ongoing efforts to achieve a renewable energy capacity of 100 GW by 2030. “With our proven success in implementing large-scale renewable energy projects in the region and worldwide, we look forward to utilizing our expertise and experience to support the Philippines in meeting its ambitious energy goals.”
The DOE has been working relentlessly for the greater entry of renewable energy in the grid’s energy mix, ensuring energy security and reliability through investment promotions and green energy auctions. This year, the Green Energy Auction 3 has been set on 11 February 2025, offering 300 MW of impounding hydro, 4,250 MW of pumped storage hydro and 100 MW of geothermal energy. Additionally, a new round of green energy auctions, which will combine renewable energy technologies with energy storage systems, as well as for offshore wind projects are set to launch in the latter part of 2025.
For this partnership with Masdar, Secretary Lotilla highlighted its broader impact --- “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.” ###