The United Arab Emirates (UAE) renewable energy firm Masdar will invest up to $15 billion in renewable energy (RE) and battery energy storage system (BESS) projects in the Philippines.
The agreement was formalized last week when Masdar signed an implementation agreement between Masdar and the Department of Energy (DOE) during the Abu Dhabi Sustainability Week (ADSW).
This agreement operationalizes the Memorandum of Understanding (MOU) on Energy Transition Cooperation signed between the Philippines and the UAE in November 2024.
Under the agreement, Masdar aims to develop up to one gigawatt (GW) of solar, wind, and BESS projects in various regions across the Philippines by 2030, potentially expanding to 10 GW over the next decade. This initiative is expected to involve an estimated total investment of $15 billion.
Masdar’s entry into the Philippine RE sector marks a significant step in the country’s energy transition efforts. DOE Undersecretary Rowena Cristina L. Guevara and Masdar CEO Mohamed Jameel Al Ramahi signed the agreement in the presence of DOE Secretary Raphael Lotilla and UAE Minister of Industry and Advanced Technology, Dr. Sultan Al Jaber, who is also the chairman of Masdar.
The agreement outlines the roles of both parties. The DOE will assist Masdar in pre-development activities, such as conducting technical studies, securing necessary rights, and obtaining required permits. It will also help Masdar apply for investment incentives and tax exemptions. Meanwhile, Masdar will take the lead in overseeing the development of the projects, including commercial, technical, financial, and environmental tasks.
“Building on the longstanding ties between the Philippines and the UAE, this partnership with Masdar represents a transformative step in our renewable energy journey,” said Secretary Lotilla. “This collaboration sets a new benchmark for energy transition in the region.”
The DOE’s goal is for renewable energy to account for 35 percent of the country’s power generation mix by 2030 and 50 percent by 2040.
Masdar’s CEO, Mohamed Jameel Al Ramahi, emphasized that the partnership would also contribute to job creation, low-carbon economic progress, and global renewable energy capacity expansion, in alignment with the UAE Consensus.
Masdar has established itself as a leader in large-scale renewable energy projects in Southeast Asia, having developed the region’s largest floating solar facility in Indonesia, the 145 MW Cirata Floating Solar PV Plant. In addition, the company entered the geothermal energy sector in 2023 with a strategic investment in Pertamina Geothermal Energy.
Ramahi noted that Masdar’s expansion in Southeast Asia will help it reach 100 GW of renewable energy capacity by 2030. “With our proven success in implementing large-scale renewable energy projects, we look forward to supporting the Philippines in meeting its ambitious energy goals,” he said.
About Editha Z. Caduaya
Edith Z Caduaya studied Bachelor of Science in Development Communication at the University of Southern Mindanao.
The chairperson of Mindanao Independent Press Council (MIPC) Inc.
