Philippines and Saudi Arabia forge energy partnership

The Philippines is looking to enhance its energy security and clean power initiatives through a potential partnership with Saudi Arabia. Department of Energy (DOE) Secretary Raphael Lotilla will lead key officials to Saudi Arabia to sign a memorandum of understanding (MOU) with the Kingdom’s Ministry of Energy, headed by Abdulaziz bin Salman Al Saud. The anticipated signin of the MOU, aims to promote collaboration in renewable energy, natural gas, and climate change mitigation technologies.

The agreement will cover joint research, policy exchanges, and capacity building in low-carbon technologies such as carbon capture and hydrogen. This follows Lotilla’s 2005 energy pact with Saudi Arabia , building on Philippine President Ferdinand Marcos Jr’s 2022 visit where Saudi firms expressed interest in the Philippine energy sector.

The Philippines has also seen progress in opening its energy market to foreign investment. Since October 2019, 100% foreign ownership has been allowed in biomass and waste-to-energy projects, following DOE Circular No. DC2019-10-0013. In addition, the 1987 Constitution permits full foreign ownership of large-scale geothermal projects under a technical or financial assistance regime.

Recent amendments to the Renewable Energy Act of 2008 further support international involvement, allowing full foreign ownership in solar, wind, hydro, and ocean energy projects. These developments align with the Philippines’ growing commitment to sustainable energy, following last week’s agreement with South Korea to explore reviving the Bataan Nuclear Power Plant.

With Saudi Arabia, a global oil powerhouse, also showing increased interest in renewable energy, the partnership reflects a mutual commitment to advancing clean energy solutions.