MANILA: The Philippines wants to expand its international energy partnerships and improve energy security with a new cooperation with Saudi Arabia, its Department of Energy said on Monday ahead of an official trip to the Kingdom.
Manila has been exploring clean and sustainable options to generate power as the country regularly suffers outages and faces high tariffs. Coal remains the main source of electricity in the Southeast Asian nation, accounting for more than half of its power generation.
A Philippine energy mission was headed to Saudi Arabia on Monday for a two-day trip “aimed at enhancing energy security, driving economic growth, and fostering sustainable development,” the DoE said in a statement.
“A major highlight of the mission is the signing of a memorandum of understanding with the Ministry of Energy of the KSA.”
The latest mission follows President Ferdinand Marcos Jr.’s trip to Riyadh last October, during which a $4.26 billion investment agreement was signed with Saudi business leaders.
At the time, some Saudi state-owned enterprises had expressed interest in investing in the Philippine energy sector, the DoE said.
The preliminary agreement will provide “a framework for cooperation on key areas,” including renewable energy and natural gas, as well as relevant technologies and solutions related to climate change mitigation.
Under the Philippine Energy Plan, the government aims to increase the share of renewable sources in the energy mix from 22 percent currently to 50 percent by 2040.
Philippine authorities expect the country’s power demand to increase almost fourfold from 2020 to 2040, especially as it remains dependent on imported fossil fuels and has insufficient renewables.
“Partnerships with Saudi Arabia extend beyond addressing the current energy needs,” the energy department said, adding that the two countries can explore possibilities for joint research and development projects, policy exchange, and capacity building in areas such as carbon capture, use and storage, and hydrogen.
“As global efforts to transition to cleaner and more sustainable energy sources intensify, the Philippines and Saudi Arabia can cooperate in the development and deployment of low-carbon technologies.”
