UK and the Philippines launch partnership to accelerate clean energy transition

4 Dec 2025

The Philippines and United Kingdom have launched the Philippines-UK PACT (Partnering for Accelerated Climate Transitions) programme, marking a significant milestone in the two countries’ strategic climate partnership. The launch took place on 2 December 2025, in Manila.    

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The Philippines-UK Partnering for Accelerated Climate Transitions (PACT) Country Fund has identified the energy sector as its key priority area, aligning with the Philippines’ target to reduce and avoid greenhouse gas emissions by 75% by 2030 and the Philippine Energy Plan 2023-2050 renewable energy target of having 35% share in the power generation mix by 2030, 50% by 2040 and RE dominating the power generation mix by 2050.. The programme has committed support to four technical assistance interventions aimed at strengthening the country’s clean energy transition framework.

The launch event and implementation workshop brought together more than 120 participants from government agencies, development partners, academia, civil society, and the private sector. Discussions focused on programme objectives, knowledge sharing, and collaboration opportunities to advance the Philippines’ energy transition.

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During the launch, British Ambassador to the Philippines, Sarah Hulton OBE, highlighted how the UK’s enduring commitment to climate action and clean energy translates into tangible benefits for Filipinos:
“A diversified renewables-driven power sector not only cuts emissions, it provides a transformative opportunity to lower costs, strengthen resilience and open new pathways for sustainable industries and employment.” 

What new interventions is Philippines-UK PACT funding?

  • Offshore wind pricing component 1 and 2: Component 1 of this intervention enhances the Green Energy Auction Programme (GEAP) by updating key technical and financial assumptions to reflect market conditions, supporting fair and efficient renewable energy pricing for fixed-bottom Offshore wind. Component 2 of this intervention strengthens the Department of Energy’s offshore wind auction framework by improving infrastructure planning, sequencing and developer evaluation to ensure project readiness.
  • Marine spatial planning for offshore wind: This project supports the Department of Environment and Natural Resources and the Department of Energy in refining its marine spatial planning tool to enable sustainable offshore wind development through participatory, data-driven  approaches.
  • Electric power system cost simulation tool: This project assists the Energy Regulatory Commission in developing a robust simulation tool to analyse generation and system-wide costs, guiding cost-effective and evidence-based energy planning as renewable energy penetration increases.
  • Micro-grid deployment acceleration: This project strengthens the Department of Energy’s capacity for data-driven microgrid planning and auction design, helping expand clean energy access in remote and underserved communities.

Highlighting the strategic value of this partnership, Paolo G Fondevilla, Director of IT and Management Services at DOE, on behalf of Secretary Sharon Garin, said: It is encouraging to see that our two countries jointly commit to forging national energy security while sourcing the same from clean and sustainable energy sources.” 

Building on this, Francis Saturnino C. Juan, Chairperson of the Energy Regulatory Commission, highlighted the value of the UK’s deep technical experience: "We are not just partnering with an investor; we are partnering with the global pioneer of offshore wind. You have the scars, you have the lessons, and you have the success stories. Through the UK PACT programme, you are transferring that deep institutional knowledge directly to our young Filipino engineers. You are helping us bridge the gap between our youthful ambition and the hard-won wisdom of a mature market." 

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The lead organisations and partners responsible for implementing these interventions are:

Intervention Lead organisation(s)
Offshore wind pricing model update Offshore Wind Consultants (OWC) and The Lantau Group (TLG)
Offshore wind infrastructure and developer readiness assessment Offshore Wind Consultants (OWC)
Marine spatial planning for offshore wind Ove Arup & Partners
Electric power system cost simulation tool Tony Blair Institute (TBI)
Micro-grid deployment acceleration Trama Tecno Ambiental (TTA)

Representatives from the Department of Energy, Energy Regulatory Commission, and Department for Environment and Natural Resources, alongside other key agencies, welcomed the initiative, noting its potential to catalyse transformative change in the country’s energy landscape.

Reflecting this sentiment, Raphael Perpetuo Lotilla, Secretary of the Department of Environment and Natural Resources shared:
“The initiative complements the UK government's mission to advance clean energy at home and abroad, while supporting partner countries in their low-carbon transitions. The UK is on track to achieve at least 95% clean power generation by 2030. The Philippines-UK PACT fund will continue to work closely with Philippine partners to ensure the successful delivery of these interventions. By promoting inclusive, evidence-based approaches and strengthening institutional capacity, the programme aims to advance renewable energy deployment, expand rural electrification, and contribute a greener, more resilient future for the Philippines.” 

By promoting inclusive, evidence-based approaches and strengthening institutional capacity, Philippines-UK PACT aims to accelerate renewable energy deployment, expand rural electrification, and contribute to a greener, more resilient future for the  Philippines.

Read more about the portfolio of interventions funded under Philippines-UK PACT here.

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