PE2: PH needs scaled-up energy efficiency to keep energy intensity from rising
MAKATI CITY, 19 July 2024 – The Philippine Energy Efficiency Alliance (PE2) issued today a statement in reaction to a World Bank announcement on the Philippines’ energy intensity of 2.8 MJ per USD 2017 PPP remaining below the 4.6 MJ global average. PE2 said the Philippines needs scaled-up energy efficiency to reverse a possible reversal of the energy intensity decline due to re-industrialization of the economy through the medium term.
On behalf of the Alliance, PE2 president Alexander Ablaza said, “The Philippines’ energy intensity continues in the interim to be relatively lower than the global average for pure economic structural reasons -- our economy is less energy-intensive due to a major shift of production to the service sectors, a modest contribution from agriculture and a continued reliance on OFW remittances.”
“The Philippine Development Plan and its supporting Philippine Energy Plan, however, project a significant increase in industrial production, which includes heavy and medium industrial activities. The electrification of new loads (e.g., electric vehicles) will also serve to concentrate energy flows through our ever-limited power grid capacities. The FDI-dependent re-industrialization and perennial pressure to bridge grid supply deficits will cause our energy intensity to gravitate toward the global average. This will accelerate annual growth in energy prices and carbon intensity of the economy,” Ablaza explained.
The PE2 statement concluded, “Only a massive implementation of energy efficiency interventions across all end-use sectors can help maintain our energy intensity at levels below 3 MJ per USD 2017 PPP. For this reason, it is imperative for the economy to mobilize over P 12 trillion in energy efficiency investments to shave off at least 182 Mtoe in final energy consumption through 2040. This way, we are able to create several gigawatts of virtual generation capacities while decarbonizing the energy sector.”
The World Bank’s Facebook announcement said, “Reaching universal access to electricity and clean cooking as well as increasing levels of efficiency improvements and share of renewables is needed to protect the most vulnerable populations.” The announcement was based on the World Bank - Energy Sector Management Assistance Program (ESMAP) global release of their report of country findings on how they were performing against Sustainable Development Goal number 7 (SDG7) for affordable and clean energy.
To view the World Bank announcement on the Philippines’ SDG7 scorecard via Facebook:
https://www.facebook.com/photo.php?fbid=643531421214736&id=100066736521376&set=a.458352816399265&locale=fr_FR
To view the World Bank - Energy Sector Management Assistance Program (ESMAP) country report for the Philippines:
https://trackingsdg7.esmap.org/country/philippines
