The Philippines has entered into a significant partnership with Masdar, the United Arab Emirates’ state-owned renewable energy company, to develop a $15 billion renewable energy project. This collaboration aims to establish solar, wind, and battery energy storage systems capable of generating up to 1 gigawatt (GW) of clean power by 2030, with plans to expand capacity to 10 GW by 2035.  

This initiative aligns with the Philippines’ strategic efforts to reduce its dependence on fossil fuels and enhance the proportion of renewable energy within its power generation mix. As of 2022, renewable sources constituted 22.8% of the nation’s energy production. The government has set ambitious targets to increase this share to 35% by 2030 and 50% by 2040, reflecting a strong commitment to environmental, social, and governance (ESG) principles and a comprehensive carbon neutral strategy.  

Philippine Energy Secretary Raphael Lotilla emphasized the transformative potential of this partnership, stating, “This partnership with Masdar marks a transformative step in our renewable energy journey.” Masdar’s CEO, Mohamed Jameel Al Ramahi, also expressed enthusiasm, noting the company’s readiness to leverage its expertise to support the Philippines in achieving its ambitious energy objectives.  

To further stimulate the development of renewable energy, the Philippine Department of Energy has announced plans to auction 300 megawatts (MW) of impounding hydro, 4,250 MW of pumped storage hydro, and 100 MW of geothermal energy projects in the coming month. Additionally, the country has amended regulations to permit full foreign ownership in the renewable energy sector, aiming to attract increased investment and accelerate the transition to sustainable energy sources.  

This substantial investment by Masdar not only underscores the Philippines’ dedication to ESG principles and its carbon neutral strategy but also highlights the growing trend of international collaboration in addressing climate change. By fostering such partnerships, the Philippines is positioning itself as a proactive participant in the global shift towards sustainable and renewable energy solutions. 

Sources: 

https://esgnews.com/philippines-secures-15-billion-agreement-with-masdar-for-renewable-energy-expansion/ 

https://www.reuters.com/sustainability/climate-energy/philippines-uaes-masdar-agree-15-bln-renewable-energy-project-2025-01-16/ 

https://business.inquirer.net/501615/uaes-masdar-commits-15-b-investment-in-ph-renewable-projects 

https://www.pna.gov.ph/articles/1241958