PE2 and DOE speak in ECCP webinar, tackling compelling case for EE in PH real estate industry

Date Published: 
April 27, 2021
  • PE2 and DOE speak in ECCP webinar, tackling compelling case for EE in PH real estate industry
    PE2 and DOE speak in ECCP webinar, tackling compelling case for EE in PH real estate industry
  • PE2 and DOE speak in ECCP webinar, tackling compelling case for EE in PH real estate industry
    (Images: ECCP)

MAKATI CITY, 27 April 2021 – Experts from the Philippine Energy Efficiency Alliance (PE2) and the Department of Energy (DOE) supported a digital forum of the European Chamber of Commerce of the Philippines (ECCP) on the linkage between energy efficiency (EE) and the Philippine real estate industry. Entitled “Developing Energy Efficient Real Estate Projects,” the online event was held earlier today by the ECCP Real Estate Committee and the ECCP Renewable Energy and Energy Efficiency Committee.

ECCP Real Estate Committee Co-Chairperson and PE2 Corporate Secretary, Atty. Maria Concepcion Simundac hosted the webinar while ECCP Renewable Energy and EE Committee Chair and PE2 vice president for internal affairs Ruth Yu-Owen served as the moderator of the forum. Lylah Ledonio, Chairperson of the ECCP Real Estate Committee delivered the opening remarks.

Screenshots of speakers and moderators from ECCP webinar on EE&C for real estate industry on 27 April 2021. Top row, left to right: Atty. Maria Concepcion Simundac, ECCP Real Estate Committee Co-chairperson and PE2 Corporate Secretary; Alexander Ablaza, PE2 President; and Director Patrick Aquino, DOE-EUMB. Bottom row, left to right: Ruth Yu-Owen, ECCP RE and EE Committee Chair and PE2 Vice President for Internal Affairs , Raymond Marquez, PE2 Treasurer and Trustee, and Atty. Efren R. Resurreccion II, Senior Associate, Villaraza & Angangco Law and PE2 Policy Committee member. (Screenshot images: PE2)
Screenshots of speakers and moderators from ECCP webinar on EE&C for real estate industry on 27 April 2021. Top row, left to right: Atty. Maria Concepcion Simundac, ECCP Real Estate Committee Co-chairperson and PE2 Corporate Secretary; Alexander Ablaza, PE2 President; and Director Patrick Aquino, DOE-EUMB. Bottom row, left to right: Ruth Yu-Owen, ECCP RE and EE Committee Chair and PE2 Vice President for Internal Affairs , Raymond Marquez, PE2 Treasurer and Trustee, and Atty. Efren R. Resurreccion II, Senior Associate, Villaraza & Angangco Law and PE2 Policy Committee member. (Screenshot images: PE2)

The online session was organized to raise awareness on the importance of EE in the Philippines by highlighting the key features of the Energy Efficiency and Conservation (EE&C) Act and its implementing regulations, while providing particular focus to energy audits and how EE impacts real estate development projects.

Atty. Efren Resurreccion II, Senior Associate of Villaraza & Angangco Law and PE2 Policy Committee member, gave a policy review of the legal developments related to EE&C. He briefed the participants on the history of the EE&C policy framework in the Philippines, the current issuances of the DOE, the key benefits of EE&C law such as fiscal and non-fiscal incentives, and the responsibilities of designated establishments.

PE2 president Alexander Ablaza presented global market findings to confirm the growing positive impacts of energy efficiency on the increase in real estate asset values. Across the US, UK, and EU (and a few Asia-Pacific) real estate markets, more studies are providing evidence to support the linkage between investments in energy efficiency improvements and the increased asset values of building and industrial properties. The improvement in property sales and rental prices attributable to energy efficiency can potentially be more meaningful in markets where energy prices are no longer subsidized, such as the Philippines.

Ablaza further cited several studies which collectively demonstrate an increase of 3-8% in the selling price of residential asset as well as an increase of around 3-5% in residential rental rates. There was also an increase of more than 10% (in some cases even more than 20%) in the selling price of commercial assets along with an increase of around 2-5% in commercial building rents.

“Energy Efficiency in Buildings (EEB) will continue to grow as a climate thrust and energy security strategy of several economies,” Ablaza emphasized. He reported that investments in building energy efficiency across global markets increased to USD 152 billion in 2019, an increase of 3% from 2018.

EEB was shown to reduce vacancy and tenant turnover, increase commercial and industrial asset value as well as increase ease in selling properties. The double impact of EE couples the increase of real estate values by preventing "brown discount" with a corresponding decrease in the reduction of energy costs and borrower's probability of default.

Ablaza added, “The pandemic-caused economic slowdown may actually provide a silver lining – an opportune time to implement EE improvements through lower utilization or occupancy.”

Director Patrick Aquino of the Energy Utilization Management Bureau (EUMB) of the Department of Energy (DOE) gave a walkthrough of the recently-released Department Circular No. DC2020-12-0026, more popularly known as the “Guidelines for Energy Conserving Design of Buildings and Utility Systems.” The guidelines apply to new buildings and their systems and any expansion or modification of existing buildings or systems with designed connected electrical loads of at least 112.5 kVA or has at least 10,000 square meters of total gross floor area. The various guidelines related to the design of building envelopes, mechanical systems and electrical systems were discussed.

DOE-EUMB reported that there are currently 198,330 square meters of gross floor area across 162 green building projects in the country as of 2020, collectively delivering 19,830,300 kWh or PHP 218,330,300 in annual energy savings. As of 21 April 2021, 2,949 designated establishments submitted their annual energy consumption reports to DOE.  It was likewise reported that in 2020, PHP 689.05 million were invested in EE projects implemented by registered energy service companies (ESCOs). These 2020 ESCO-implemented projects are delivering PHP 209.8 million in energy savings.

“You cannot talk about conservation or preservation without talking about energy efficiency.” Aquino quipped.

Engr. Raymond Marquez, PE2 treasurer and trustee, tackled the salient aspects of an energy audit and how to ensure compliance with the reportorial requirements under the EE&C Law. He offered comparative definitions of Level 1, Level 2, Level 3 and Investment-Grade energy audits by describing the scopes, systems, audit providers, durations, instruments and deliverables typically associated with each type of energy audit. “Don't treat EE as a liability, because we are talking about savings,” said Marquez.

Ruth Yu-Owen also added that EE captures self-use renewable energy. “EE is an opportunity, not a burden,” she declares.

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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