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PE2 president Alexander Ablaza answers questions from participants during IIEE’s 46th Annual National Convention on 26 November 2021. (Screenshot image: PE2)
PE2 president Alexander Ablaza answers questions from participants during IIEE’s 46th Annual National Convention on 26 November 2021. (Screenshot image: PE2)

PE2 asks electrical practitioners to build end-user awareness of EE&C law obligations

QUEZON CITY, 26 November 2021 – Philippine Energy Efficiency Alliance (PE2) president Alexander Ablaza asked electrical engineers and electricians from various regions of the country to help designated establishments improve their awareness and compliance with their obligations under RA 11285, more popularly known as the Energy Efficiency and Conservation (EE&C) Act. Ablaza made this call earlier today during his 90-minute lecture, “Energy Efficiency as a critical component in the race to Net Zero: How Republic Act 11285, EE&C Act, can kickstart the long-term objective of dispatching energy efficiency as a primary energy resource through 2040” as part of the week-long 46th Virtual National Annual Convention of the Institute of Integrated Electrical Engineers of the Philippines (IIEE).

Ablaza said, “We seek the help of electrical practitioners in getting the word out and improve awareness of energy end-users of their new responsibilities under the EE&C law. IIEE has an excellent nationwide reach of electrical engineers and electricians, who will most certainly play a significant role in the design and implementation of energy efficiency projects across commercial, industrial and transport establishments.”

The PE2 head initially cited a study of 11 OECD countries that showed that 65% of total final consumption across 36 years was actually displaced by energy efficiency (EE), clearly making it the largest and energy source. He said, “Global energy markets should gravitate toward planning energy efficiency as a primary energy resource – an indigenous fuel to be dispatched with priority.” He also presented the International Energy Agency’s (IEA) projections of how EE is a critical component of the Net Zero Energy Scenario, which will enable the global market to potentially decrease final consumption below today’s levels and still service an economy twice as large and a population with two billion more people by 2050.

While IEA estimates that USD 24.5 trillion in EE investments will need to be mobilized by 2040, Ablaza believes that Southeast Asia will need USD 892 billion in EE investments by the same timeline. He said, “Energy efficiency needs a major paradigm shift – it needs to be treated as a major Net-Zero Energy component, a pillar of countries’ Nationally Determined Contributions under their Paris climate agreement obligations, a primary energy resource for priority dispatch in national energy plans, as infrastructure in government procurement, a clean energy source in energy transition pathways and a new secured investment asset class.” The world needs to mobilize a significant amount of EE investments, typically double that required for renewable energy (RE).

With the recent passage of RA 11285, the Philippines finally rejoins the many jurisdictions around the world with an EE law or incentive framework in place. He said that the country can aspire to achieve 182 Mtoe in energy savings, USD 726 billion avoided energy purchases, 45,900 MW in deferred energy infrastructure capacity upgrades, 1.7 GtCO2e avoided in greenhouse gas emissions, over 9 million green jobs, slower rise in energy prices, increased GDP outputs, and reduced dependence on fossil fuel imports. The local economy would however need to mobilize USD 243 billion in EE investments, over two-thirds of which will be third-party investments that will need sustained fiscal incentives.  Third-party investments include energy service company (ESCO) performance contracts, public-private partnership transactions, joint venture agreements, large-scale Government-led retrofit programs and other off-balance sheet financing modalities.

The EE&C Act defines new roles and responsibilities of Government, certification of EE practitioners and ESCOs, minimum energy performance and energy labeling requirements, obligations of designated establishments and, fiscal and non-fiscal incentives.

Finally, Ablaza emphasized that EE can generate 45% more jobs than infrastructure projects for the same amount of stimulus or capital funding. EE in buildings creates more jobs than other decarbonizing actions in the energy sector. He said, “Over 9 million EE jobs can be generated in the Philippines through 2040, if the economy succeeds in mobilizing PHP 12 trillion in EE capital flows.”

IIEE’s theme for the 46th annual convention was “Transcending the Challenges in the New Normal by Embracing Resiliency and Complementarity” which heeds the Institute’s aspiration to remain steadfast and resilient amidst the professional and industry challenges to provide well-rounded services and continuing professional development among electrical practitioners.

IIEE is the professional organization of electrical practitioners accredited by the Professional Regulation Commission (PRC). Founded in 1975, the organization grew from 500 members initially to over 47,000 members in its roster today.

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Energy Efficiency Day 2022 | Philippine Energy Efficiency Alliance (PE2)

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