DOE and PE2 reach out to landlords in ECCP webinar, push EE adoption and ESCO solutions

Date Published: 
June 4, 2021
  • DOE and PE2 reach out to landlords in ECCP webinar, push EE adoption and ESCO solutions
    (Image: ECCP)
  • DOE and PE2 reach out to landlords in ECCP webinar, push EE adoption and ESCO solutions
    Screenshot of webinar speakers, panelists and event hosts. (Image: ECCP)

MAKATI CITY, 4 June 2021 – The Department of Energy (DOE), the Philippine Energy Efficiency Alliance (PE2) led a panel of discussants in a webinar hosted earlier today by the Real Estate Committee of the European Chamber of Commerce of the Philippines (ECCP) with the shared objective of raising landlord and property sector awareness on the Energy Efficiency and Conservation Act, and how energy efficiency (EE) improvements can be financed and incentivized. 

Entitled “Landlords’ Briefing on Energy Efficiency and Conservation Law,” the digital forum was opened by ECCP Board Director and Treasurer Helen Grace Baisa. Panelists were introduced by Lylah Ledonio, Chairperson of the ECCP Real Estate Committee.

ECCP explained that this event was the third installment of the committee’s Monthly Roundup Series, and was organized with the support of Leechiu Property Consultants. Aside from key speakers from DOE and PE2, the ECCP Real Estate Committee also invited real estate industry leaders to share their experience in responding to market signals raised by EE policy issuances, regional trends such as green building certifications and net-zero energy buildings and the global call to decarbonize the building sector.

The webinar featured Director Patrick Aquino of the DOE Energy Utilization Management Bureau (EUMB); PE2 president Alexander Ablaza; Ricardo Cuerva, Managing Director of the Nova Group; and Raymond Rufino, President and CEO of NEO Office Ph as panel discussants.

Director Aquino of DOE-EUMB briefed the audience on the recently approved Guidelines for Energy Conserving Design of Buildings. The guidelines apply to new buildings and their systems and any expansion or modification of existing buildings
or systems with designed connected electrical loads of at least 112.5 kVA or has at least 10,000 square meters of total gross floor area. The various guidelines related to the design of building envelopes, mechanical systems and electrical systems were discussed.

Beyond the design guidelines for buildings, Director Aquino announced that the Republic Act No. 11285 provides for fiscal incentives for energy efficiency projects, which are further strengthened by the recently passed CREATE law. The DOE-EUMB head likewise reported that in 2020, PHP 689.05 million were invested in EE projects implemented by registered energy service companies (ESCOs). These 2020 ESCO-implemented projects are delivering PHP 209.8 million in energy savings.

PE2 president Alexander Ablaza opened his presentation saying, “EE policies are the clear first step in a long-term transformation toward energy efficient buildings.” He explained that RA 11285 cuts across all energy end-use sectors, and practically all thematic pillars of the new law impact the building sector. He underscored how energy efficiency retrofits in other markets increase commercial and industrial asset values, ease selling of properties and reduce vacancy and tenant turnover. Ablaza reported that more studies are providing evidence to support the linkage between investments in energy efficiency improvements and the increased asset values of building and industrial properties. The improvement in property sales and rental prices attributable to energy efficiency can potentially be more meaningful in markets where energy prices are no longer subsidized, such as the Philippines. He cited several studies which collectively demonstrate an increase of 3-8% in the selling price of residential asset as well as an increase of around 3-5% in residential rental rates. There was also an increase of more than 10% (in some cases even more than 20%) in the selling price of commercial assets along with an increase of around 2-5% in commercial building rents. He added, “The pandemic-caused economic slowdown may actually provide a silver lining – an opportune time to implement the more operationally-disruptive EE improvements through lower utilization or occupancy.”

Ablaza explained that the local economy will need to mobilize PHP 12 trillion in energy efficiency capital, and that up to two-thirds of this capital gap will have to be filled through off-balance sheet capital flows such as ESCO performance contracting, public-private partnership transactions, joint-venture agreements with government corporations and Government-led, large-scale forced obsolescence of low-efficiency technologies.

The PE2 head said that ESCOs will certainly be a catalytic agent to support landlords and the property sector in their objective of accelerating the implementation of energy efficiency measures, as ESCOs not only have the technical expertise to reduce specific energy consumption of building electrical and mechanical systems, but can also flow debt-finance or third-party equity to EE projects outside the balance sheets of the building owners and occupants.

The virtual event was capped by a lively panel discussion with Raymond Rufino and Ricardo Cuerva joining the DOE and PE2 speakers, and exchanging perspectives on energy efficiency adoption by the property sector.

Ed Gador of Leechiu Property Consultants and LJ Lombos of ECCP served as event moderator and master of ceremonies, respectively.

About PE2

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

Learn More

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

Beyond COVID-19: How governments, ESCOs and innovative financial modalities can mobilize energy efficiency capital through 2040

Working Together to Bridge an Energy Efficiency Financing Gap

Infographics

PE2 Infographics on Energy Efficiency and Conservation Roadmap Targets

Infographics on Roadmap Targets for Energy Efficiency and Conservation

» View | Download

Join PE2 Now!

We would love to have you on board

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

Learn More

PE2 Secretariat

  • Philippine Energy Efficiency Alliance, Inc. (PE2)
    19/F Philippine AXA Life Centre 
    Senator Gil Puyat Avenue 
    corner Tindalo Street 
    Makati City, Metro Manila 
    Philippines 1200
  • +63 2 7989 3007 
  • secretariat@pe2.org 
Signup to our newsletter:

To prevent automated spam submissions leave this field empty.