Philippines Secures $15 Billion Renewable Energy Deal with UAE’s Masdar

TDT | Manama

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The Philippines is taking a significant step toward its energy transition goals with a landmark $15 billion agreement with Masdar, the United Arab Emirates' state-owned renewable energy company. The deal aims to develop solar, wind, and battery energy storage systems across the Southeast Asian nation.

Manila has been working to reduce its dependency on fossil fuels, targeting an increase in renewable energy's share of the energy mix from the current 22% to 35% by 2030 and 50% by 2040.

Signed last week in Abu Dhabi, the agreement will initially provide up to 1 gigawatt (GW) of clean energy by 2030, with plans to expand capacity to 10 GW by 2035, according to the Philippines’ Department of Energy (DOE).

“This collaboration will significantly advance our goal of achieving 35 percent renewable energy in power generation by 2030,” Philippine Energy Secretary Raphael Lotilla said in a statement.

The partnership follows Philippine President Ferdinand Marcos Jr.’s visit to the UAE last November, during which both nations signed a range of agreements on investments, artificial intelligence, and energy transition.

Lotilla emphasized that the deal would bolster the Philippines’ energy security while providing “significant economic benefits,” including job creation and technology transfer. “Together, we are positioning the Philippines as a regional leader in sustainable energy,” he added.

The project also marks Masdar’s entry into the Philippine renewable energy market, a move expected to accelerate the country’s shift to clean energy.

The Philippines has been grappling with frequent power outages and high electricity tariffs. Currently, coal dominates the country’s energy generation, accounting for over 50% of its output. The collaboration with Masdar is seen as a major step toward diversifying and modernizing the nation’s energy infrastructure.