DOE and PE2 hold follow-up discussions on guidelines for BOI registration of EE&C projects

Date Published: 
March 3, 2020
  • DOE and PE2 hold a follow-up meeting on 3 March 2020 to discuss specific guidelines related to the BOI registration of EE&C projects under RA 11285. From left: Dir. Patrick T. Aquino, DOE-EUMB; Theresa Acedillo Lapuz, PE2; and, Alexander Ablaza, PE2. (PE2 photo by Luigi G. Eusebio)
    DOE and PE2 hold a follow-up meeting on 3 March 2020 to discuss specific guidelines related to the BOI registration of EE&C projects under RA 11285. From left: Dir. Patrick T. Aquino, DOE-EUMB; Theresa Acedillo Lapuz, PE2; and, Alexander Ablaza, PE2. (PE2 photo by Luigi G. Eusebio)

TAGUIG CITY, 3 March 2020 – The Department of Energy (DOE) and the Philippine Energy Efficiency Alliance (PE2) held a follow-up meeting earlier today to discuss the proposed guidelines for the registration of energy efficiency and conservation (EE&C) projects with the Board of Investments (BOI) under the fiscal incentives provision of Republic Act 11285, or the EE&C Act, and its implementing rules and regulations. Held in the offices of the Energy Utilization Management Bureau (EUMB) of the DOE, the meeting follows a meeting of the BOI, DOE and PE2 on 26 February 2020 to agree on next steps.

Both DOE and PE2 reviewed the draft guidelines prepared and shared by the Board of Investments – Resource-Based Industries Service in July 2019 and November 2019.

DOE proposed to remove the portion of the guidelines pertaining to self-financed projects.

PE2 proposed to maintain the minimum 15% energy savings threshold, measured at project boundary level. This would prevent the abuse of the label “energy efficiency” and distinguish such measures from those with less meaningful savings and falling under the BOI category “modernization.” PE2 proposed further that DOE should endorse the % energy savings when it submits its letter of endorsement to BOI. DOE accepted this recommendation.

DOE likewise proposed to simplify the matrix of income tax holiday (ITH) benefits granted as a function of energy savings.

DOE needs to align the energy service company (ESCO) qualification with the proposed ESCO certification guidelines. For this reason, both certified and registered ESCOs should qualify for BOI registration.

Both DOE and PE2 agreed to retain the following features of the guidelines: [a] Granting of Pioneer status to all EE&C projects registered with BOI; [b] The owner of the plant, facility or establishment may belong to any energy end-use sector, such as commercial, industrial or government sectors; [c] ITH shall be reckoned from the start of operation of the EE&C project; and, [d] ITH shall be applied to the income of the ESCO in the course of the performance contract.

DOE was represented by EUMB Director Patrick T. Aquino.

The PE2 officers present during the meeting were president Alexander Ablaza, treasurer Theresa Acedillo Lapuz and member services and communications manager Luigi G. Eusebio.

About PE2

Philippine Energy Efficiency Alliance Inc. (PE2), is a non-stock, non-profit organization of energy efficiency market stakeholders.

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Republic Act 11285

R.A. 11285 - An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects

RA 11285 - Text

RA 11285 - Signed

IRR - Signed

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