ECCP and PE2 kick off 2021 round of EE fora with DSM webinar

Date Published: 
August 19, 2021
  • ECCP and PE2 kick off 2021 round of EE fora with DSM webinar
    (Image: ECCP)

MAKATI CITY, 19 August 2021 – Renewing the partnership of the European Chamber of Commerce of the Philippines (ECCP) and the Philippine Energy Efficiency Alliance (PE2) for this year’s round of energy efficiency (EE) webinars under the Energy Smart Forum Series 2021 (ESFS 2021), the virtual forum  “Advancing Energy Efficiency and Demand Side Management” was held  today with the support of the Department of Energy (DOE), the European Union – Access to Sustainable Energy Programme (EU-ASEP), and PE2’s newest ESCO member, First Gen Energy Solutions, Inc. (FGES).

A multi-sectoral panel of EE and demand-side management (DSM) experts took a deep dive on the policy-based opportunities to ramp-up EE implementation through DSM initiatives such as demand-response programs and explore how such can be mainstreamed through the supply-side of the local energy market, especially that of the power sector. Wearing her hat as Chair of the ECCP Renewable Energy and Energy Efficiency Committee, PE2 vice president for internal affairs Ruth Yu-Owen hosted the webinar as emcee.

Energy Senior Undersecretary Jesus Cristino P. Posadas explained in his keynote address that the DOE, as the lead agency in the implementation of Republic Act No. 11285, is currently drafting the DSM guidelines which are aimed at: (1) reducing energy consumption through effective load management; (2) promoting reduction of energy use, leading to reduced greenhouse gas emissions as part of climate change mitigation measures; and, (3) mitigating electrical system emergencies by preventing power outages and increasing system reliability by offering to end-users and utilities. The DOE official said, “We acknowledge that it will be a challenge to implement Demand Side Management due to [the] changing [of] patterns of consumption and entering into the realm of efficiency. We cannot do it alone and we need your assistance in implementing measures towards an energy-efficient country.”

A screenshot from the ECCP-PE2 forum on Advancing Energy Efficiency and Demand Side Management on 19 August 2021 shows speakers and panelists: (top row, left to right) Usec. Jesus Cristino Posadas of DOE, Dr. Alma Bella Madrazo of EU-ASEP, Dir. Patrick Aquino of DOE-EUMB, (middle row, left to right) April Joy dela Viña of First Gen Energy Solutions, Ileana Miritescu of EU Delegation, Alexander Ablaza of PE2, and (bottom row) Ruth Yu-Owen of ECCP and PE2. (Image: ECCP)
A screenshot from the ECCP-PE2 forum on Advancing Energy Efficiency and Demand Side Management on 19 August 2021 shows speakers and panelists: (top row, left to right) Usec. Jesus Cristino Posadas of DOE, Dr. Alma Bella Madrazo of EU-ASEP, Dir. Patrick Aquino of DOE-EUMB, (middle row, left to right) April Joy dela Viña of First Gen Energy Solutions, Ileana Miritescu of EU Delegation, Alexander Ablaza of PE2, and (bottom row) Ruth Yu-Owen of ECCP and PE2. (Image: ECCP)

Dir. Patrick T. Aquino of DOE Energy Utilization Management Bureau (EUMB) focused on Section 24 of the Republic Act 11285 or the Energy Efficiency and Conservation (EE&C) Act. He explained that to address the first of five key objectives of DSM, a policy framework would be needed to establish and institutionalize the partnership between distribution utilities (DUs) and energy end-users in implementing DSM programs through an Integrated DSM approach, which may include a combination of the following programs: demand response, net metering, ILP, self-generation, self-storage, and smart grid policies. The other DSM objectives call for the adoption of efficient and effective practices, as well as the reduction of electricity consumption, carbon footprint and greenhouse gas emissions and the increase of system reliability. He explained that the DOE vision for a smart grid by 2040 is one that is self-healing, allows full customer choice, optimizes energy storage systems, energy management systems and distributed energy resources, fully implements retail competition and open access, renewable portfolio standards, green energy option and net metering policies, incorporates demand response and peak load management and mainstreams smart homes and cities.

The EUMB director also said, “ESCOs are partners in compliance with the EE&C Act, as they offer multi-technology services and goods towards developing and designing EE projects, delivering and guaranteeing energy savings, and ensuring cost-effective and optimal performance.” He also discussed related features of the EE&C Act, such as the obligations of designated establishments, the Philippine Energy Labeling Program, the energy conserving design for buildings, the endorsement of EE projects to the Board of Investments (BOI) for fiscal incentives, and non-fiscal incentives such as the EE excellence awards.

EU-ASEP DSM expert Dr. Alma Bella P. Madrazo presented DSM trends and experience in other countries. She made it clear that there are two main categories of DSM: (1) EE measures aim to achieve a permanent reduction in energy usage; and, (2) Demand response initiatives seek to achieve a temporary reduction in load on power plants during peak times. They do this in part by creating incentives for customers to shift their usage to off-peak hours.

Dr. Madrazo concluded with the view that implementing DSM strategies could be a valuable tool to help Southeast Asia better manage its rapidly growing energy needs. The track record of utilities in advanced countries that used such DSM strategies, households and businesses who have gained advantage from participating in them – is evidence that DSM works when implemented successfully. Southeast Asia could achieve a similar outcome, if stakeholders including governments, regulators, utilities and customers/end-users unite around the goal. A strategic partnership approach between DUs and end-users anchored on common goals and objectives will drive a successful DSM program. From an environmental perspective, promoting and implementing DSM resulting in a decrease in energy demand due to improved efficiency reduces greenhouse gas emissions and helps mitigate climate change.

First Gen Energy Solutions’ April Joy B. de la Viña talked about a Retail Electricity Supplier’s (RES) role in implementing EE in the country. She opened with the premise that the Lopez group of companies has committed to forging collaborative pathways for a decarbonized and regenerative future. As the group proposes a call to action to address the supply deficiency in the Luzon grid, it firmly believes that industries can also contribute to "freeing" up the capacities by making their operations efficient. She gave examples of energy-efficient practices where companies can utilize and optimize energy consumption in their facilities while saving up on costs. She also emphasized the immense value of generating, capturing and storing energy consumption data, as these monitoring outputs become a powerful management tool for the customer. There is a symbiotic relationship between suppliers and customers when it comes to energy efficiency. The RES can provide the customer a platform to enable the monitoring and management of energy resources. De la Viña said, “Energy efficiency is an iterative process that requires cooperation and collaboration between parties involved in the monitoring by the RES and management by the customer of the energy system.”

PE2 president Alexander Ablaza said, “Implementing EE through a DSM policy framework needs a whole-of-economy approach. Directly or indirectly, every energy end-use sector will have to be working more closely with the supply-side of the local energy market through a robust and smart DSM policy framework.” He added, “PE2 is pleased that under the EE&C Act DOE has aggressively pushed the DSM policy agenda, which did not move at all under the last twenty years of EPIRA.” Ablaza affirmed that DOE and the rest of Government need the help of civil society, private sector and even small energy end-users. He said that PE2 will most certainly step up its collaboration with Government and the rest of the economy toward a responsive DSM policy framework.

EU Delegation Programme Manager Ileana Miritescu closed the webinar with the EU perspective saying “Through the EU-ASEP programme implemented by GIZ, we are proud to have actively supported DOE’s energy efficiency initiatives for the last six years.” She added, “We supported the development of a policy framework for DSM implementation across all electricity end-users and power industry participants. A strategic partnership between end users and distribution utilities can be established based on common goal and objectives that will drive a successful DSM Program… The bigger challenge now is to ensure that energy efficiency coupled with the use of renewable energy can help achieve energy sustainability, meet climate commitments, and improve resilience.”

Under its partnership for ESFS 2021, ECCP and PE2 will be co-organizing more EE webinars through October 2021.

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

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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

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