DOE and PE2 step up collaboration for energy efficiency
TAGUIG CITY, 14 October 2025 – Top officials of the Department of Energy (DOE) and the Philippine Energy Efficiency Alliance (PE2) met earlier today to bolster the DOE-PE2 collaboration toward the scaled-up implementation of energy efficiency and conservation (EEC) in the country.
PE2 president Alexander Ablaza, who led the PE2 delegation, proposed three major areas for improved collaboration. These are: (1) increasing EEC awareness and EEC Act compliance across smaller designated establishments and LGUs; (2) supporting ESCO market growth; and, (3) review of fiscal incentives for EEC.
Ablaza reported to DOE management, led by newly appointed Secretary Sharon S. Garin, that talks are already underway for integrating PE2’s Energy Efficiency Day into DOE’s Philippine Conference for Energy Efficiency and Conservation (PCCEEC).
The two organizations also exchanged ideas on initiatives to increase uptake for energy service company (ESCO) performance contracts, not only among designated establishments (DE), but eventually for government entities. Both DOE and PE2 were willing to explore programs involving willing EEC champions among LGUs. DOE was also willing to study the viability of tradeable certificates for EEC project developers in the emerging carbon markets.
PE2 also sought the reclassification of EEC investments as a Tier 3 domestic market activity under the draft 2025 Strategic Investment Priority Plan (SIPP). Ablaza explained, “Neither the Tier 1 nor Tier 2 classifications are helpful to improve the investment returns of long-term EEC projects, because several ESCO contracts will naturally remain in net operating loss through the shorter income tax holiday periods.”
Both DOE and PE2 also recognized the need for ESCO and third-party project developer (TPPD) projects to be allowed post-commencement DOE endorsement and BOI registration citing the extremely short project gestation time for commercial contracts with commercial and industrial DEs. Ablaza said, “PE2 believes that if an ESCO or TPPD is allowed to register its EEC investment within the first 15% of its contract duration, it would still gain the chance to improve investment returns. Unlike grid-tied renewables, EEC investments do not enjoy the luxury of preparing projects beyond 3-6 months.”
DOE was represented by Sec. Sharon Garin, Usec. Mario Marasigan, DOE-EUMB Director Patrick Aquino and Division Chief Ferdinand Binondo.
The PE2 delegation was composed of Ablaza, PE2 vice president for internal affairs Ruth Yu-Owen, PE2 vice president for external affairs Theresa Acedillo-Lapuz, PE2 trustees Ledicia dela Cruz and Felix Richard Cordova, PE2 representative Ava Taniajura, PE2 policy, advocacy and external affairs advisor Archie Diaz and PE2 secretariat manager Hazel Planco.
PE2 also reported that the Philippines was among the ESCO growth markets in Southeast Asia, joining the ranks and market maturity of Malaysia, Singapore and Thailand. The Alliance also explained its role in convening the Asia-Pacific ESCO Industry Alliance (APEIA) and co-founding the Global ESCO Network.
