DOE, PE2 meet DBP CEO on EE lending
MAKATI CITY, 6 November 2020 – The Department of Energy (DOE) and the Philippine Energy Efficiency Alliance (PE2) jointly met with Development Bank of the Philippines (DBP) President Emmanuel G. Herbosa earlier today to kick-off a three-way conversation on how all three entities can work together to enable energy efficiency (EE) financing especially for projects hosted by government entities. PE2 organized the virtual meeting, which was held via Zoom.
PE2 president Alexander Ablaza opened the meeting citing the need for the economy to mobilize P 12 trillion in on-balance sheet and off-balance sheet capital in the next two decades to meet the country’s 2040 EE roadmap targets. Ablaza likewise mapped the EE opportunities in public buildings, water districts and streetlighting and how several PE2 members can support with their ESCO contracting, EE technologies, solutions and services. He also echoed PE2’s push to accelerate public spending in energy efficiency to generate more jobs in a post-COVID19 economic recovery.
DOE Energy Utilization Management Bureau Patrick T. Aquino discussed the broader context of enabling Republic Act 11285 and how concessional financing would serve to accelerate the implementation of EE projects across all energy end-use sectors. He said that DOE or the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) are trying to understand if government financial institutions like DBP would need new policies to remove persistent barriers to EE lending especially those in support of Government Energy Efficiency Projects (GEEPs) under the Government Energy Management Program (GEMP).
DBP President Herbosa, assisted by DBP SVP Paul D. Lazaro and DBP SAVP Rustico Noli D. Cruz, presented the bank’s E2SAVE Energy Efficiency Savings Financing Program and explained how this EE loan program design caters to the needs of local government units, national government agencies, government-owned and controlled corporations, state universities and colleges, small and medium enterprises, and even ESCOs and energy service providers (ESPs). DBP explained that the concessional terms include fixing the monthly amortizations based on energy savings and stretching maximum loan tenors to 10 years, when needed. E2SAVE also covers working capital and trade finance requirements of ESCOs and ESPs. They showcased a DBP-assisted LED streetlighting project for the City of Tacloban and a few rooftop solar projects financed under their E2SAVE portfolio, and highlighted that their portfolio includes loans or omnibus facilities to a couple of PE2 members.
Screenshot of some DBP, DOE and PE2 participants during a virtual meeting on 6 November 2020. (Image: PE2)
PE2 vice president for internal affairs Ruth Yu-Owen moderated a lively discussion, with inputs, views and questions from PE2 member representatives, which included KK Ralhan of Total Renewable and Energy Efficiency Solutions, Colin Steley of Stratcon PH, Jose O. de Jesus of OSP ESCO International, Theresa Acedillo-Lapuz of Hi-Cool Engineering and Felix Richard A. Cordova of Edward Marcs Philippines. Other participating member companies included ABB, Advanced Energy Technologies Renewables Plus, Beyond Energy System Technology, Climargy, Daikin Air Conditioning, Engie Services Philippines, Geosphere Technologies and Westco Electrical and Equipment.
