The Philippines is looking to bolster its energy security through new international partnerships, specifically with Saudi Arabia. As the country grapples with frequent power outages and high electricity tariffs, the Department of Energy is exploring clean and sustainable energy solutions.
A Philippine energy delegation is visiting Saudi Arabia for two days, with a primary goal of enhancing energy security and fostering economic growth and sustainable development. A pivotal moment of this mission will be the signing of a memorandum of understanding with the Kingdom’s Ministry of Energy.
This visit follows President Ferdinand Marcos Jr.’s trip to Riyadh last October, where an agreement worth $4.26 billion was reached with Saudi business leaders. Interest has been expressed by several Saudi state-owned enterprises in investing in the Philippine energy sector.
The initial agreement will lay the groundwork for collaboration in key areas such as renewable energy, natural gas, and innovative technologies aimed at addressing climate change.
According to the Philippine Energy Plan, the government aims to increase the contribution of renewable energy sources from the current 22% to 50% by 2040. With power demand anticipated to nearly quadruple between 2020 and 2040, the Philippines remains reliant on imported fossil fuels and lacks adequate renewable resources.
The energy department emphasizes that collaborations with Saudi Arabia extend beyond immediate energy requirements. The two nations can explore joint research and development initiatives, share policies, and build capacity in key areas, such as carbon capture and storage, as well as hydrogen production.
With global initiatives moving towards cleaner and more sustainable energy sources, there is significant potential for cooperation in developing and implementing low-carbon technologies between the Philippines and Saudi Arabia.
