Efficiency law seen producing up to 23% in energy savings

Date Published: 
August 26, 2021
  • Efficiency law seen producing up to 23% in energy savings
    (File Photo: BusinessWorld, PhilStar)

(PE2 Note: This BusinessWorld article captures Sen. Gatchalian and PE2 president Alexander Ablaza’s estimates of the energy savings impacts of the EE&C Act.)

ENERGY SAVINGS with the full implementation of the energy efficiency law could amount to 23%, Senator Sherwin T. Gatchalian said.

“We’ve seen some initial data. Right now, the law is still being implemented, but initially we’ve seen savings of about 23% from businesses if this law is fully implemented,” he said at a virtual event Thursday.

“That’s the same savings that we can realize if government also fully implements the law.”

The Energy Efficiency and Conservation Act or Republic Act No. 11285 aims to institutionalize energy efficiency through conservation programs.

Energy savings refer to the percentage reduction of energy consumption to perform the same task, which lowers spending on power and reduces environmental harm.

Mr. Gatchalian, who chairs the Senate Committee on Energy, said the law is in its infancy but it can contribute to the efficiency of industries.

“The traditional thinking of economic growth is you add more power, but in Germany they have already demonstrated that you can grow by being more efficient and consuming less power.”

Philippine Energy Efficiency Alliance, Inc. President Alexander de Ramos Ablaza said economy-wide energy savings would likely be the equivalent of 21% of final energy demand.

“We’re hoping that the energy efficiency and conservation law will be the first policy measure. It will not be the only measure, but there will be supplemental pieces of legislation,” he said in a phone interview Thursday.

The law needs to be fully enforceable within the next few years, he said.

Written/Posted by: 
Jenina P. Ibañez

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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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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

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RA 11285 - Signed

IRR - Signed

Beyond COVID-19: How governments, ESCOs and innovative financial modalities can mobilize energy efficiency capital through 2040

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