PE2 meets USAID Energy Secure PH team on EE initiatives

Date Published: 
February 11, 2021
  • PE2 president Alexander Ablaza (upper, center) discusses with Divina Chingcuanco, Noel Verdote, Claire Marie Yvonne Lee and Enrique Gallardo Jr of the USAID Energy Secure Philippines project team in a virtual meeting on 11 February 2021. (Image: PE2)
    PE2 president Alexander Ablaza (upper, center) discusses with Divina Chingcuanco, Noel Verdote, Claire Marie Yvonne Lee and Enrique Gallardo Jr of the USAID Energy Secure Philippines project team in a virtual meeting on 11 February 2021. (Image: PE2)

MAKATI CITY, 11 February 2021 – The Philippine Energy Efficiency Alliance (PE2) met with the USAID Energy Secure Philippines project team earlier today to discuss the policy reform, technical capacity development needs, financing barriers and procurement gaps facing the energy efficiency (EE) market and the energy service company (ESCO) sector as the economy aspires to mobilize no less than P 12 trillion in EE capital through 2040.

PE2 was represented by its president Alexander Ablaza and its member services and communications manager Luigi Andrei G. Eusebio. Energy Secure PH was represented by Divina Chingcuanco, Noel Verdote, Claire Marie Yvonne Lee and Enrique Gallardo Jr.

Ablaza shared the 10-year vision of the Alliance. PE2 expects the newly enacted Republic Act 11285, otherwise known as the Energy Efficiency and Conservation (EE&C) Act, to be fully enforced and delivering significant impacts which convincingly point toward the country’s ability to achieve the energy efficiency contributions to its 2030 obligations under the Paris climate agreement and the 2040 EE&C roadmap targets previously set by the Philippine DOE. PE2 hopes that by the 10th year, all sectors – government, civil society and private sector – would have tightened the collaboration toward mainstreaming energy efficiency as a primary energy resource, and would have successfully enabled private capital flows through innovative financing and business models toward a fully recognized infrastructure development economic activity and energy asset class called energy efficiency.

The PE2 head said, “We expect all implementational gaps facing the newly enacted EE&C Act, to have been fully bridged by completed policy, market and financial interventions from government, civil society, the private sector and the development community.”

Ablaza explained that EE&C post-IRR policy issuances will need to be crafted, reviewed through multi-sectoral consultations, approved and enforced. These policy issuances include, but not limited to: EE Guidelines for Fiscal Incentives to be administered by the BOI; implementing guidelines for utility-led demand-side management by DOE, ERC and PEZA; procurement regulations by DBM and GPPB-TSO and audit guidelines by COA that would enable multi-year contracting and contract payments from energy savings related to energy service company (ESCO) performance contracting for EE&C projects in the public sector; specific EE guidelines for public-private partnership (PPP) transactions under the B-O-T law and joint venture (JV) agreements under the NEDA JV Guidelines; and the ESCO certification process and guidelines by DOE. Also, the legislative intent of providing fiscal incentives under the EE&C Act should be preserved by Congress, DOF and BIR as they implement and oversee the implementation of Sec. 25 of the EE&C Act and as they craft and enable new legislation intended to rationalize tax-based incentives under a comprehensive tax reform program. ESCO sector development activities, implemented by PE2, will include training and certification of ESCO professionals (energy auditors, energy managers, measurement and verification professionals), and the crafting and adoption of industry-standard ESCO performance contracting templates. Lastly, an ESCO guarantee fund should be designed, established, seed-funded with non-commercial/climate funds, operationalized by a selected government or private financial institution (e.g. guarantee corporation).

Echoing the PE2 recommendations proposed during USAID’s energy sector stock-taking workshop held in November 2019, Ablaza proposed that foreign-assisted projects such as Energy Secure PH can budget grant allocations to support the policy, market, financial and sector capacity development interventions mentioned earlier with international and local experts. USAID can also flow knowledge (e.g. best practices, contracting templates, training materials, global benchmarks, etc.) to government, civil society and private sector stakeholders. USAID can also mobilize its own budget resources or other climate/development funding to seed-fund the ESCO guarantee fund.

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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PE2 Infographics on Energy Efficiency and Conservation Roadmap Targets

Infographics on Roadmap Targets for Energy Efficiency and Conservation

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The Philippine Energy Efficiency Alliance, Inc. (PE2) is a non-stock, non-profit organization of energy efficiency market stakeholders.

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