UAE’s Masdar commits $15-B investment in PH renewable projects
The Marcos administration has scored a win as Masdar, a clean energy giant based in the United Arab Emirates (UAE), has committed about $15 billion worth of investments in the local renewable market.
A deal was signed on Wednesday between the Department of Energy (DOE), represented by Undersecretary Rowena Cristina Guevara, and Masdar chief executive officer Mohamed Jameel Al Ramahi.
This agreement came just two months after the Philippines and the UAE inked a memorandum of understanding on energy transition cooperation.
Under the fresh pact, Masdar would develop up to 1 gigawatt (GW) of clean energy capacity by 2030, with sources mainly banking on solar and wind.
Battery energy storage systems, a technology meant to complement renewables’ efficiency given their intermittency in generating power, would also be deployed across the Philippines.
Long-standing ties
The UAE-based firm also hinted at further expanding its portfolio here to 10 GW “within a decade,” the DOE said.
“Building on the long-standing 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,” Energy Secretary Raphael Lotilla was quoted as saying in a statement on Thursday.
For its part, the DOE said it would help Masdar in its predevelopment activities, technical studies and securing the necessary rights and permits.
Masdar is also set to enjoy investment and tax perks, the agency noted.
According to the DOE, Masdar sees great potential in the local market. Currently, the firm has an impressive renewable portfolio of more than 50 GW. It hopes to double the figure 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,” its top executive said.
Meanwhile, Lotilla said that under the Marcos administration, the growth of renewable energy’s contribution to the power generation mix is “on an unprecedented scale.”
The government hopes to increase clean energy’s share in the energy mix to 35 percent by 2030 from the current 22 percent.
