Philippines-UK PACT

• 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 will work closely with government stakeholders, technical and industry experts, and financial institutions to implement scalable solutions that unlock capital for renewable energy projects. The Fund will drive policy innovation and strengthen 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 microgrid planning to support the Philippines’ target of 50% renewable energy share by 2050 and 100% household electrification by 2028. 

• Intervention 1: Updating of Pricing Model for Offshore Wind Projects for the Green Energy Auction Program in the Philippines: This project shall provide technical assistance to the ERC and DOE by validating and updating key technical and financial assumptions used in the LCOE model to ensure that they reflect current market conditions. It will also assess relevant regulatory, fiscal, and grid-related factors that influence project economics.  The analysis will be aligned to DOE’s Term of Reference for Offshore wind auction.
• Intervention 2:  Developing a tool for electric power system cost simulation: This project aims to develop a Philippines-specific robust electric power system cost simulation tool that integrates not just renewable energy (RE) generation costs from the GEAP auctions but also broader system-wide costs, including but not limited to transmission, distribution, and ancillary services alongside pertinent developments in the retail electricity market. This will allow a more holistic assessment of rate impact on energy consumers from the GEAP auctions, by enhancing the ERC’s capacity to optimise least-cost generation pathways and inform long-term grid planning.

• Intervention 3: Advancing National Marine Spatial Planning in the Philippines - building from Offshore Wind Use Cases: This project aims to support the technical validation and peer review of the offshore wind MSP tool ensuring methodological soundness and a participatory multi-stakeholder approach and build government capacities in the application of the offshore wind MSP tool and design appropriate mitigation measures to enhance industry confidence. 
• Intervention 4: Accelerating micro-grid deployment for energy access and economic development: This project aims to enhance the government's capacity for micro-grid planning, including the design and implementation of a targeted data collection framework to assess energy demand. It also seeks to support the government in utilising the collected data for micro-grid planning and future auction design.