ECCP and PE2 push efficiency in the energy supply chain in 4th EE webinar

Date Published: 
November 4, 2021
  • ECCP and PE2 push efficiency in the energy supply chain in 4th EE webinar
    (Image: ECCP)

MAKATI CITY, 4 November 2021 – The European Chamber of Commerce of the Philippines (ECCP) and the Philippine Energy Efficiency Alliance (PE2) held earlier today the fourth energy efficiency (EE) webinar under the Energy Smart Forum Series (ESFS) 2021 to discuss how the EE agenda can be expanded upstream and across the various tiers of the energy supply chain. Entitled “Transitioning Towards a Green and Efficient Energy Supply Chain,” the webinar featured a panel of key EE experts from both the legislative branch of government and the private sector which exchanged views on how EE can contribute to the greening of the energy market, while enhancing energy security by creating virtual generating or production capacities or deferring capital investments for additional energy infrastructure.

Ruth Yu-Owen, PE2 vice-president for internal affairs and ECCP Renewable Energy and Energy Efficiency Committee chair opened the event as master of ceremonies and moderator. Gerry Constantino, ECCP Director for Projects, Events, and Training, provided strategic context by sharing the chamber’s wider perspective of the EE sector’s contribution to the Philippine economy and impact on the lives of the Filipino people, particularly job generation and building a sustainable future for all. The keynote message was delivered by Senator Sherwin T. Gatchalian, who continues to chair the Senate Committee on Energy, co-chair the Joint Congressional Energy Commission, and was the principal author of RA 11285, or the Energy Efficiency and Conservation Act. His message was followed by presentations of Marcus Ong of Mainstream Renewable Power, and Vincent Jason “Jek” V. Peñalosa of Westco Electrical & Equipment Corporation, a DOE-certified energy service company (ESCO) and active Regular A member of PE2.

Screenshot from the ECCP-PE2 webinar on 4 November 2021 shows (clockwise from lower left) Sen. Sherwin T. Gatchalian, Ruth Yu-Owen of ECCP and PE2, Vincent Jason “Jek” Peñalosa of Westco and Marcus Ong of Mainstream RP. (Image: ECCP, PE2)

Sen. Gatchalian highlighted five global trends:  net-zero targets, coal and gas phase-out, internal combustion engine (ICE) vehicle phase-out, emergence of hydrogen and other new technologies, and COP26 developments. Climate movements are now pushing the Breakthrough Agenda, the Green Grids Initiative, the Global Energy Alliance for People and Planet, the Breakthrough Energy Catalyst Programme and the Clean Energy Initiative. He also reiterated the need for framework and policies to adapt to these trends, which are actually pressure points for policy makers. He also gave updates on the bicameral conference status of two bills, the Senate Bill No.1928 or the Microgrid Systems Act and Senate Bill No. 1382 or the Electric Vehicles and Charging Stations Act.

Sen. Gatchalian also talked about the energy transition plan that the Department of Energy (DOE) is now crafting in coordination with the Department of Finance (DOF) and the Climate Change Commission (CCC). He stressed that the country’s energy transition plan should be directed toward a net-zero energy target by 2050 and that it balances the objectives of energy security and a just transition for displaced workers and affected sectors.

Marcus Ong of Mainstream RP discussed the economic impacts of renewable energy (RE) in the Philippines. He estimates that wind and solar projects could create 1.3 million new jobs by 2040, or 1 million net new jobs created, after coal and gas jobs are considered. Renewable energy could avoid the importation of up to USD 3.6 billion of coal and gas annually by 2040, leading to a positive GDP impact of almost USD 6.0 billion annually by 2040. Over the past decade, it has been proven that renewables have become cheaper than coal and gas, with wind levelized cost of energy (LCOE) reduced by about 70% and solar by about 70%-90%. These drastic and continued cost reductions are making fossil fuels unable to compete with renewables. Also, RE will lead to enhanced price stability as they are domestic resources that are not impacted by imports, geopolitics, and fluctuating prices of oil. Ong proposed that it was imperative for the government to outline the steps required in order to secure an offshore wind service contract, and the development permits required, and align policy frameworks with grid and transmission infrastructure. He added, “Anticipating how RE will impact infrastructure requirements is critical to the successful integration of renewables and battery storage on the grid.”

Vincent Jason “Jek” Peñalosa of Westco emphasized that the proper maintenance of electrical equipment is critical and should be given due attention and resources by the equipment and facility owners. He explained the different kinds of maintenance programs such as condition-based, prevention-based and reactive or corrective. The Westco official underscored how a good maintenance program is a core function of asset management, whether it be done for pure compliance or the owner is genuinely interested in reducing its carbon footprint or in pursuing an effective energy audit.

Peñalosa clearly concluded that preventive and condition-based maintenance is far better than corrective or reactive maintenance. He recommended that owners eliminate the traditional notion “If it ain’t broke, don’t fix it.” He also suggested that an electrical preventive maintenance program be done in close conjunction with the EE program of the facility. Lastly, he said that engaging a knowledgeable ESCO with capabilities to perform critical measurements is a critical first step in launching a combined preventive maintenance and EE program.

During the panel discussion, Sen. Gatchalian observed that the energy transition should be prioritized, legislated and institutionalized and that there should be a roadmap for market stakeholders. Under the EE law, the DOE and Department of Budget and Management  (DBM) are tasked to come up with expanded procurement mechanisms for local government units (LGUs) to use for them to launch their EE programs using more innovative contracting and financing modalities. He said, “It is the law that we need to untangle, in the same way that the landmark Mandanas ruling radically expanded the way internal revenue allocations of LGUs are based on a broader base of all national taxes. The Supreme Court affirmed that local government units are entitled to a “just share” of all national taxes collected and not just through the Bureau of Internal Revenue (BIR).”

The ECCP-PE2 event was organized with the support of Westco Electrical & Equipment Corp., AC Energy, Mainstream RP and MPower.  The last ECCP-PE2 EE webinar under ESFS 2021 entitled “Realizing the Opportunities in Energy Efficiency Innovations” is scheduled for 10:00am of 16 November 2021.

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

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


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Infographics on Roadmap Targets for Energy Efficiency and Conservation

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