Energy efficiency industry, angling for slice of PESA money, touts job-creation potential

Date Published: 
June 1, 2020
  • (Photo: BusinessWorld / Philippine Star)
    (Photo: BusinessWorld / Philippine Star)

(PE2 note: BusinessWorld reports on PE2’s position statement on how energy efficiency delivers 45% more jobs for the same amount of investment or stimulus compared to infrastructure development.)

ENERGY efficiency projects have the potential to generate 45% more jobs than the government’s flagship infrastructure program, assuming extensive investment from the economic stimulus package, the industry association said.

In a position paper sent to various agencies Monday, the Philippine Energy Efficiency Alliance, Inc. (PE2) is lobbying for P55 billion worth of investment in energy efficiency for inclusion in the proposed Philippine Economic Stimulus Act (PESA), saying investment will boost job generation after the economic stagnation caused by the coronavirus disease 2019 (COVID-19) pandemic.

It said that energy efficiency projects are projected to generate 10 more jobs, or 37.42, for every P50 million worth of capital invested, compared to the government’s “Build, Build, Build” (BBB) program, which creates about 25.88 jobs per P50 million invested.

“In comparison to the BBB program through the remaining term of the Duterte administration, energy efficiency projects are estimated to be 45% more labor-intensive than BBB infrastructure development activities, creating significantly more jobs for every P50 million invested in long-term or stimulus programs,” PE2 said.

The Department of Budget and Management (DBM) estimated that 1.1 million jobs are created each year from the implementation of BBB projects, in which P8-9 trillion is due to be invested by 2022.

Under the PESA Bill, the enhanced infrastructure program will receive around P650 billion in funding.

The job-generation estimate was arrived at after a survey of energy service companies.

PE2’s investment recommendations will create around 41,200 energy efficiency-related jobs over three years starting 2021.

The proposed investment includes P40 billion in concessional loans from financial institutions such as the Development Bank of the Philippines and the Land Bank of the Philippines to local government units and small businesses for their energy efficiency projects. Another P15 billion will go to energy-efficiency improvements in public sector facilities.

On May 26, the House Defeat COVID-19 Ad-Hoc Committee approved PESA among bills aimed to help the Philippine economy recover from the pandemic.

Written/Posted by: 
Adam J. Ang

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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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