Description: Saudi utility development company ACWA Power concluded a solar project development agreement with the Filipino government for devising a 500MW solar project. The agreement was concluded between representatives of ACWA’s Filipino office and the Bases Conversion and Development Authority (BCDA) which is a state agency that manages the reconstruction of US bases in the Philippines. The project would undertake a 500 – hectare land parcel within the New Clark City initiative and would include an integrated solar photovoltaic battery energy storage system. The project was reportedly part of ACWA’s clean energy investment initiatives that were presented to Filipino President Ferdinand Marcos Junior last year. ACWA is a publicly listed Saudi company with close ties to the Saudi government.
Impact: The solar photovoltaic megaproject likely indicates closer bilateral ties and cooperation between Saudi Arabia and the Philippines and is likely part of a larger global trend in focusing towards green energy sources, following the latest disruptions of basic commodities and fossil fuels caused by the war in Iran. Through the project, Saudi Arabia likely extends its sphere of influence and soft power outreach in the Indo – Pacific, considering the large – scale utility development that would produce large amounts of clean energy in the Philippines and support industrial and commercial development. The Philippines are benefiting through diversifying their national energy portfolio and reducing reliance on fossil fuels which would likely benefit the country’s industrial and commercial sectors in the long – term.