ECCP and PE2 raise corporate awareness on EE&C obligations, financing and technologies

MAKATI CITY, 19 October 2020 – The European Chamber of Commerce of the Philippines (ECCP) and the Philippine Energy Efficiency Alliance (PE2) organized earlier today the second energy efficiency (EE) event under the ECCP Energy Smart Forum Series with its EE Forum entitled “Understanding Corporate Obligations under the Energy Efficiency and Conservation Law.” PE2 member companies Delta Dore and Engie Service Philippines, as well as the Development Bank of the Philippines (DBP) sponsored today’s EE forum, which is aimed at arming designated establishments with knowhow on accessing financing and technologies to help them comply with their obligations under Republic Act no. 11285, otherwise known as the Energy Efficiency and Conservation (EE&C) Act.

ECCP Renewable Energy (RE) and EE Committee Chair and PE2 vice president for internal affairs Ruth Yu-Owen delivered the welcome remarks, while PE2 corporate secretary Atty. Maria Concepcion P. Simundac served as moderator of the webinar.

Speakers from ECCP, PE2, DOE, DBP, Delta Dore and Engie Services pose for a group photo during the ECCP-PE2 co-organized EE forum on 19 October 2020. (Screenshot image: ECCP)

In his keynote address, DOE-EUMB Director Patrick Aquino focused on the obligations of designated establishments, energy service companies (ESCOs), certification of energy conservation officers, energy managers, and energy auditors, as well as guidelines on energy-conserving designs for buildings.

• Designated establishments have most crucial obligations under the sectors and industries under the EE&C Act, as stipulated in the DOE Memorandum Circular No. 2020-05-0001. This measure aims to integrate an energy management system policy into the business operation based on ISO 50001 or any similar framework; as well as improve average specific energy consumption in accordance with the annual reduction targets to be established by the DOE in the National EE&C Plan.
• ESCOs are partners in compliance with the EE&C Law, 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.
• The draft Department Circular on the certification of Energy Conservation Officers, Energy Managers, and Energy Auditors are currently under evaluation, following a series of public consultations with stakeholders.
• The guidelines on energy-conserving designs for buildings aim to encourage and promote the energy-conserving designs of buildings and their services to reduce the use of energy with due regard to the cost-effectiveness, building function, comfort, health, safety, and productivity of the occupants.

DBP President and CEO Emmanuel Herbosa provided highlights on the bank’s financing scheme for energy projects. E2SAVE provides credit assistance to EE and RE projects of LGUs, public agencies, private entities, and ESCOs. As a strong partner of the national government in implementing the EE&C Act, Mr. Herbosa also highlighted that concessional DBP financing is available to support EE&C projects to help achieve the Philippines’ energy sustainability objectives.

PE2 president Alexander Ablaza presented several financing options that are available for energy efficiency projects. To shave off final energy demand by 182 Mtoe through 2040, an estimated USD 243 billion or PHP 12 trillion in energy efficiency capital should be mobilized by the economy in the next two decades. This may be achieved through business-as-usual self-financed and debt-financed modalities or through more innovative off-balance sheet financing schemes. Other modalities that can be utilized to finance EE projects are: ESCO performance contracts, public-private partnerships, joint venture agreements, large-scale government retrofit programs, and other off-balance-sheet financing arrangements.  He also talked about the opportunity of accelerating post-COVID19 economic recovery by increasing public spending in EE projects, which are anticipated to be 45% more labor-intensive than the Build, Build, Build program, and more cost-effective in terms of meeting the country’s energy security objectives and environmental obligations.

Delta Dore’s Alex Pluquet presented the company’s solutions that could help organizations comply with the EE&C law. These innovations include the internet-of-things platform solutions, building management system solutions, multi-site platform, and continuous optimization support. It was also highlighted in his presentation that companies must anticipate what actions to take in line with the evolving energy sector and ecosystem.

Engie Services Philippines’ Paulo Palencia underscored the importance of EE, as this supports businesses in addressing the challenges in energy and resources. Particularly, he discussed how EE solutions can help address concerns in the sector including high electricity costs as well as low carbon energy supply, on top of the need to comply with the EE&C law. He also shared district cooling system and other EE projects that Engie Services has completed and is currently implementing to help clients transition to a more sustainable use of energy.