More clarity seen in H2 on energy efficiency rules
THE ENERGY efficiency (EE) industry said it is expecting approval in the second half of 2022 of guidelines that will clarify the workings of Republic Act No. 11285, or the Energy Efficiency and Conservation (EEC) Act, in time for the full reopening of the economy.
In a Viber message, Philippine Energy Efficiency Alliance (PE2) President Alexander D. Ablaza said clearer rules will allow developers to plan their projects more effectively, particularly once the procedures for energy audits are outlined.
Mr. Ablaza said the industry also requires “more granular policy issuances” on the procurement and financing of energy service company (ESCO) performance contracts.
He said he hopes the policy will be clarified for public-private partnership (PPP) transactions and joint venture (JV) agreements designed specifically for public sector EE projects.
PE2 is also awaiting the Board of Investments approval for the Tier III reclassification of all EE projects, regardless of whether they are strategic or complex, which Mr. Ablaza said will help address the estimated P12.2-trillion “investment gap” by offering an incentive framework for third-party investors.
The Strategic Investment Priorities Plan (SIPP), which governs which types of investment are preferred for tax breaks, classifies Tier III investments as “critical to the structural transformation and industrial revolution of the economy.”
Before the passage of RA 11285, the number of eligible energy-intensive industries implementing EE projects was limited due to the absence of a mandatory energy efficiency and conservation policy framework.
With the implementation of the EEC law, designated establishments (DEs) are directed to install energy management systems in order to become more efficient users of energy.
PE2 expects that a growing proportion of DEs will become more aware or will comply with their EE obligations this year “and through the next five years.”
The organization will be staging its second Energy Efficiency Day conference on April 20-21, to air out the latest EE market developments and innovations.
PE2 is positioning its services as a primary resource or “first fuel” as the Philippines shifts to clean energy in response to the annual shortages during the dry season and the surge in fuel prices triggered by the Russia-Ukraine war.
“This year’s event will place heavier emphasis on climate finance, energy service company (ESCO) performance contracting and third-party investment models,” Mr. Ablaza added.
The webinar will consist of two half-day sessions.