Philippines Partners With Masdar For $15B Renewable Deal

Philippines, UAE's Masdar Sign $15 Billion Deal for Renewable Energy

In the march to renewable energy, the Philippines has signed a landmark $15 billion deal with Masdar, the UAE's top renewable energy firm, to jointly develop clean energy projects. This cooperation, formalized at the Abu Dhabi Sustainability Week 2025, will deliver up to 1 GW of renewable energy capacity by 2030 and scale up to 10 GW by 2035. This is one of the country's biggest leaps in its transition to cleaner sources of energy. It aligns with the ambitious target of the Philippines to shift away from fossil fuels and towards a power mix of 35% renewable energy by 2030 and 50% by 2040.

The partnership was sealed through an Implementation Agreement with the Philippine Department of Energy and a Memorandum of Understanding with the Board of Investments. Philippine Energy Secretary Raphael Lotilla hailed the deal as a transformative step in the nation's journey toward renewable energy. "This partnership with Masdar marks a transformative step in our renewable energy journey," Lotilla remarked, emphasizing the significance of the collaboration in accelerating the country's shift to sustainable energy solutions.

Masdar is highly experienced in solar, wind, and BESS, making it highly pivotal for supporting the energy goals of the Philippines. Masdar's CEO, Mohamed Jameel Al Ramahi, stated that the company would focus on its capabilities to further enhance the growth of renewable energy in the region. "We are eager to apply our experience and expertise to assist the Philippines in realizing its aggressive energy ambitions," he said.

The partnership reflects the Philippines' efforts to attract international investment in its energy sector and underscores the country's strategic policy of full foreign ownership in renewable energy projects. Opening up its energy sector to global players, the Philippines aims to secure the resources and technology needed to meet its growing energy demands sustainably.

This move will be followed by the launch of a green energy auction program by the Philippine government, with 300 MW of hydroelectric power, 4,250 MW of pumped storage hydro, and 100 MW of geothermal energy. The country is emphasizing the diversification of its renewable energy portfolio while ensuring energy security.

Philippine Trade Undersecretary Ceferino Rodolfo said the partnership brings with it great economic and environmental benefits. "This collaboration shall significantly advance our goal of achieving 35% renewable energy in power generation by 2030 while fostering a dynamic and sustainable economic future," Rodolfo said, touching on the broader socio-economic implications of the deal.

Masdar's entry into the Philippines is a major milestone in its expanding footprint in Southeast Asia. The company's regional portfolio already includes the Cirata Floating Solar PV plant in Indonesia and various clean energy initiatives in Malaysia. Globally, Masdar is on track to reach 100 GW of renewable energy capacity and produce 1 million tonnes of green hydrogen annually by 2030.

It further highlights the improving bilateral relations between the Philippines and the UAE. UAE Minister Dr. Sultan Al Jaber termed the cooperation a reflection of both countries' common commitment to sustainable development. "By tapping the UAE's international best practice leadership in renewable energy and the Philippines' vast natural resources, this agreement will stimulate employment, catalyze low-carbon socio-economic growth, and increase renewable energy capacity around the world," Dr. Al Jaber added.

With the Philippines taking giant strides to a greener tomorrow, this partnership, too, further solidifies its place in the region as a leader in renewable energy. The targeting of 10 GW in renewable capacity by 2035 will not only meet the nation's power needs but also help set up a global standard for sustainability initiatives. Huge employment opportunities, increased economic growth rates, and GHG emissions can now be tackled with this plan to usher into a clean future.

The $15 billion deal between the Philippines and Masdar is more than just an energy project—it is a symbol of the global transition toward cleaner energy systems and a testament to the power of international collaboration in combating climate change. Through this partnership, the Philippines sends a clear message about its commitment to achieving its renewable energy targets and contributing to a sustainable and resilient global energy landscape.