Three-Year Energy Pact to Strengthen Reliability and Access Nationwide

Three-Year Energy Pact to Strengthen Reliability and Access Nationwide

  • December 16, 2025

The Management Association of the Philippines (MAP) and the Department of Energy (DOE) have formalized a three-year Joint Energy Action Agenda (JEAA) covering 2026 to 2028, aimed at fast-tracking the implementation of the Philippine Energy Plan (PEP) 2023–2050 and enhancing the country’s long-term energy security.

The agreement marks a strengthened public-private partnership (PPP) to ensure reliable, sustainable, and affordable electricity for Filipino households and businesses, particularly in off-grid and underserved communities.

Key Pillars For Energy Development

The JEAA, developed by the MAP Energy Committee following a series of policy roundtables in September 2025, sets a joint roadmap anchored on four key pillars: energy mix delivery, infrastructure readiness, market evolution, and financing and cost management.

Under the first pillar, MAP and DOE will work to deliver the PEP’s targeted energy mix that balances affordability, reliability, and sustainability. The agenda includes reviewing key PEP assumptions, accelerating project approvals through the Energy Virtual One Stop Shop (EVOSS), exploring waste-to-energy opportunities, and identifying lower-cost power options for isolated areas. 

Efforts will also support improving the competitiveness and accessibility of natural gas as part of the country’s energy diversification strategy.

The second pillar focuses on infrastructure readiness to address transmission and distribution bottlenecks. MAP will initiate an industry dialogue with the National Grid Corporation of the Philippines (NGCP) to align on critical transmission expansion needs. A concept proposal will also be developed for the National Power Corp. (NPC) to repurpose portions of the Universal Charge for Missionary Electrification (UCME) toward customized off-grid electrification solutions.

Strengthening Market and Financing Frameworks

The third pillar, market evolution, aims to refine the energy market by enhancing competition, transparency, and inclusiveness. Joint activities include engaging with the Energy Regulatory Commission (ERC) through its Technical Working Group to strengthen mechanisms under Retail Competition and Open Access (RCOA), potentially unlocking dormant electricity demand. 

The partners will also examine financial exposure from stranded capacities and explore cost-mitigation measures to maintain grid stability and consumer protection.

The fourth pillar, financing and cost management, emphasizes ensuring the energy transition remains financeable and efficient. Initiatives will cover innovations in market design beyond long-term power supply agreements (PSAs), aggregated demand solutions for small-scale consumers, and diversified financing channels through both commercial and development banks.

Unified Energy Commitment

MAP and DOE will also collaborate on policy frameworks for energy derivatives and futures-based markets to improve capital access and risk management.

According to both organizations, the three-year JEAA represents a shared commitment to the DOE’s core performance indicators: accessibility, reliability and resiliency, and clean energy and sustainability. The partnership hopes to maximize the private sector’s critical role in advancing national energy priorities and supporting a resilient transition toward a secure and inclusive energy future.

Source:

https://manilastandard.net/business/314676473/map-doe-sign-3-year-plan-to-boost-energy-security.html

https://www.philstar.com/business/2025/12/07/2492391/map-doe-sign-pact-advance-philippines-energy-plan

https://legacy.doe.gov.ph/pep

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