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Monday, February 17, 2025

Masdar investing $15b to rollout 10 GW of RE projects in PH

Masdar, a UAE-based global leader in renewable energy, plans to develop an initial 1 gigawatt (GW) of solar, wind and battery energy storage systems (BESS) across the Philippines by 2030.

It expects to scale up the projects to

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10 GW within a decade, with estimated investments of $15 billion.

Energy Secretary Raphael Lotilla announced this landmark development during the signing of an implementation agreement between the Department of Energy (DOE) and Masdar on Jan. 15, 2025, marking Masdar’s entry into the Philippine RE sector.

The agreement operationalizes the memorandum of understanding (MOU) on energy transition cooperation signed by the Philippines and the UAE in November 2024, during the official working visit of President Ferdinand Marcos Jr. to the UAE.

“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 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,” he said.

The agreement was signed by DOE Undersecretary Rowena Cristina Guevara on behalf of the DOE and Masdar chief executive Mohamed Jameel Al Ramahi, in the presence of Lotilla and Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and chairman of Masdar.

“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 as a regional leader in sustainable energy,” said Lotilla.

Under the agreement, the DOE will assist Masdar in conducting pre-development activities, technical studies and securing the necessary rights. The DOE will also facilitate Masdar’s applications for investment incentives and tax exemptions.

Meanwhile, Masdar will take the lead in project development and overseeing commercial, technical, financial and environmental workstreams.

Ramahi said the significant expansion of Masdar’s activities in Southeast Asia is part of its ongoing efforts to achieve 100 GW of RE capacity 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,” he said.

Jaber said the 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,” he said.

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.

It entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy in February 2023.

Masdar also signed a landmark agreement with the Malaysian Investment Development Authority in 2023 for the development of 10 GW of clean energy projects.

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.

It set the Green Energy Auction 3 on Feb. 11, 2025, offering 300 MW of impounding hydro, 4,250 MW of pumped storage hydro and 100 MW of geothermal energy.

A new round of green energy auctions, combining renewable energy technologies with energy storage systems, as well as for offshore wind projects, are set to launch in the latter part of 2025.

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