UAE’s Masdar forays into Philippines with $15bn clean energy project

Abu Dhabi Future Energy Company, also known as Masdar, has made its first major foray into the Philippines’ renewables market, with the has signed a $15bn deal to develop solar, wind, and battery energy storage systems.

The investment is expected to deliver up to 1 gigawatt (GW) of clean energy by 2030. It will support the Philippines Energy Transition Program, which seeks to achieve 35 per cent renewable energy in power generation by 2030 and 50 per cent by 2040.

“This partnership marks a new chapter in the longstanding relationship between the UAE and the Philippines,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and chairman of Masdar.

“By leveraging the 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.”

The Philippines Department of Energy said the project sets the stage for the development of up to 1GW of solar, wind and battery energy storage systems across various regions in the country, with plans to scale up to 10 GW by 2035.

The department will assist Masdar in conducting pre-development activities and technical studies, securing the necessary rights, gathering project information and obtaining all required approvals. It will also facilitate the renewable energy firm’s applications for investment incentives and tax exemptions.

Meanwhile, the Southeast Asia region is a key market for Masdar. The renewable energy firm developed the region’s largest floating solar facility in Indonesia – the 145 megawatt (MW) Cirata Floating Solar PV plant – which is generating enough electricity to power 50,000 homes.

The company also signed an agreement with the Malaysian Investment Development Authority in 2023 to develop 10 GW of clean energy projects across the country.

Masdar is active in more than 40 countries and has a total electricity generation capacity of more than 20 GW.

The clean energy firm has invested, or committed to invest, in worldwide projects with a combined value of more than $30bn with ambitious growth plans to reach 100 GW and one million tonnes of green hydrogen by 2030.

Read: Masdar to build world’s first 1GW baseload renewable plant in the UAE