Philippines-UK PACT

Philippines-UK PACT: Advancing renewable energy and rural electrification

The UK is supporting the Philippines to accelerate renewable energy deployment and rural electrification.

The Philippines-UK PACT Fund focuses on two key priority areas to advance the country’s energy transition:

  • Offshore wind (OSW): Supporting regulatory reforms, infrastructure development, workforce capacity-building, and marine spatial planning to unlock the country’s 178 GW OSW potential.
  • Renewable energy micro-grids: Enhancing the government's capacity for micro-grid planning and improving the availability of energy and demand data to accelerate rural electrification.
The Philippines-UK PACT Fund works closely with government stakeholders, technical and industry experts, and financial institutions to implement scalable solutions that unlock capital for renewable energy projects. The Fund drives policy innovation and strengthens ecosystems for the energy transition.
 
By addressing key barriers and leveraging UK expertise, Philippines-UK PACT aims to create transformational change through the design of replicable green auction programs, strengthened regulatory frameworks, and micro-grid planning to support the Philippines’ target of 50% renewable energy share by 2050 and 100% household electrification by 2028.

What strategic interventions are being delivered through Philippines-UK PACT?

Intervention 1: Offshore wind pricing (component 1) and infrastructure (component 2).
Led by Offshore Wind Consultants (OWC) and The Lantau Group (TLG):
  1. Enhancing the green energy auction programme through improved OWC pricing mechanisms. This component of the project aims to provide targeted technical assistance to the Energy Regulatory Commission to enhance the offshore wind pricing framework. The deliverables seek to validate and update key technical and financial assumptions within the Levelised Cost of Energy (LCOE) model to ensure these reflect current and evolving market conditions. They also assess relevant regulatory, fiscal, and grid-related factors shaping project economics. Findings from the analysis will inform the Philippines Department of Energy’s Terms of Reference for the upcoming offshore wind auction, supporting a more competitive and investor-ready renewable energy market.

  2. Offshore wind infrastructure and developer readiness assessment. This component of the project strengthens the Department of Energy’s offshore wind auction framework through strategic infrastructure planning and developer evaluation. It provides targeted technical support to assess the feasibility, sequencing and critical milestone progression of offshore wind projects, from early-stage development to commercial operation. It also outlines documentation standards and supply chain engagement requirements to evaluate developer readiness for Final Investment Decision (FID). By establishing scoring criteria and reviewing bidders’ infrastructure development plans, the intervention enhances transparency, ensures accountability and supports a fair offshore wind auction process.
Intervention 2: Electric power system cost simulation tool: Developing a robust tool to guide cost-effective energy planning.
Led by the Tony Blair Institute (TBI).
This intervention supports the Energy Regulatory Commission (ERC) in developing a Philippine-specific, robust electric power system cost simulation tool. This tool integrates renewable energy generation costs from the Green Energy Auction Program (GEAP) with broader system-wide costs including transmission, distribution, ancillary services, and retail electricity market dynamics. By enabling a holistic view of system costs, the tool will empower regulators and policymakers to make evidence-based decisions on tariff design, and renewable integration strategies. It will also support long-term planning by simulating different renewable energy penetration scenarios.
 
Intervention 3: Marine spatial planning for offshore wind: Advancing national frameworks using offshore wind as a use case.
Led by Ove Arup and Partners.
This intervention supports the Department of Environment and Natural Resources’ capacity to implement effective marine spatial planning (MSP) for offshore wind. It provides technical validation and peer review of the government’s offshore wind MSP tool to ensure it is technically sound and informed by a participatory multi-stakeholder approach. The intervention also builds institutional capability to apply the tool and design appropriate mitigation measures that balance environmental sustainability with investment confidence, laying the groundwork for a framework to guide the growth of the offshore wind sector.

Intervention 4: Micro-grid deployment acceleration: Promoting energy access and economic development in underserved areas.
Led by Trama TecnoAmbiental (TTA).
This intervention strengthens the Department of Energy’s capacity for effective micro-grid planning and deployment for Unserved and Underserved Areas (UUA). It will establish a targeted data collection framework to assess local energy demand and support the department in using this data to inform future microgrid expansion and auction design. By enhancing planning capabilities, the intervention accelerates sustainable energy access and drives socioeconomic development in areas historically lacking reliable power infrastructure.

About UK PACT

UK PACT (Partnering for Accelerated Climate Transitions) is a unique capacity-building programme. Jointly governed and funded by the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and the Department for Energy Security and Net Zero (DESNZ) through the UK's International Climate Finance, it works in partnership with countries with high emissions reduction potential to support them to implement and increase their ambitions for tackling climate change.

 

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