The Market Monitor Minding the Nation's Business
The Department of Energy (DOE) is ramping up its efforts to secure bilateral energy cooperation agreements as the Philippines strives to catch up on its renewable energy targets.
DOE Secretary Raphael Lotilla recently led an energy mission to Saudi Arabia, where the Philippines signed its first memorandum of understanding (MOU) with Saudi Energy Minister Abdulaziz bin Salam Al Saud.
Joining Lotilla on this mission was Maharlika Investment Corp. President and CEO Rafael Consing Jr., along with representatives from major Philippine energy companies, including ACEN Corp., Aboitiz Power, Amber Kinetics, Citicore Renewable Energy Corp., and San Miguel Corp. Power Holdings. These firms engaged in discussions with prominent players in the energy sector, such as Masdar, the Emirates Nuclear Energy Corporation (ENEC), and the International Renewable Energy Agency (IRENA).
“Our ambitions may not yet be aligned with some countries, and we are slightly behind—our target is 50% renewable energy by 2040. However, with collaboration on a bilateral level, we can accelerate progress,” Lotilla said in an interview with Arab News.
The DOE emphasized that the Philippine-Saudi Arabia MOU includes cooperation in nuclear energy, particularly with ENEC, which is currently developing peaceful nuclear energy projects, including the Barakah Nuclear Energy Plant, the first of its kind in the Arab world.
The Philippines is working to establish an independent regulatory body for the safe development of nuclear energy, and ENEC is expected to provide valuable support.
Potential areas of collaboration include creating comprehensive legal and regulatory frameworks, conducting training programs for regulators and technical staff, advising on stakeholder engagement, and offering technical expertise in nuclear energy development.
Earlier this month, Lotilla also signed an MOU with South Korea to begin a feasibility study for the Bataan Nuclear Power Plant (BNPP) in January 2025, marking another step in the Philippines’ pursuit of nuclear energy.
In a report released Friday, Fitch Solutions’ BMI unit projected that coal-fired power will dominate the Philippine energy mix through 2025, accounting for over 60% of generation. However, this share is expected to decline after 2025 as the country faces dwindling gas reserves and ramps up efforts in renewable energy and alternative sources.
The DOE’s focus on both nuclear and renewable energy partnerships underscores the government’s commitment to diversifying the energy portfolio and addressing the country’s long-term energy security needs.