PE2 promotes ESCO model and fiscal incentives during PH ABB’s EE Forum

Date Published: 
July 29, 2021
  • PE2 promotes ESCO model and fiscal incentives during PH ABB’s EE Forum
    (Images: ABB)
  • PE2 promotes ESCO model and fiscal incentives during PH ABB’s EE Forum
    (Images: ABB)

PARAÑAQUE CITY, 29 July 2021 -   ABB Philippines (PH ABB) invited Philippine Energy Efficiency Alliance (PE2) president Alexander Ablaza to deliver a presentation on the various energy efficiency (EE) financing options and the emerging guidelines for EE fiscal incentives during the Day 4 Energy Efficiency Forum of PH ABB’s week-long Digital Summit held virtually earlier today.

Ablaza heavily promoted the energy service company (ESCO) delivery model for EE technologies. Using the language of approved guidelines issued by the Department of Energy (DOE), he said that “ESCO refers to a juridical entity that offers multi technology services and goods towards developing and designing EE projects, delivering and guaranteeing energy savings, and ensuring cost effective and optimal performance.” He said that a well-developed ESCO market should be able to flow a significant volume of the PHP 8 trillion of target EE capital mobilization outside the balance sheets of designated establishments and other large energy end-users.

The PE2 head explained that DOE is ready to endorse EE projects to the Board of Investments (BOI) with a minimum investment of PHP 10 million and capable of hurdling a 15% minimum energy savings threshold measured at the EE project boundary. DOE defines simple EE projects as those that involve new installations, upgrading or retrofitting of specific equipment or devices in the system such as, but not limited to, lighting retrofits, automated lighting control systems or smart control systems, HVAC upgrades, boiler replacements, and other similar devices or equipment within a system. On the other hand, complex EE projects involve new installation, retrofitting or upgrading of a system or a combination of a systems such as but not limited to cogeneration systems, district cooling systems, steam systems from boiler to the steam-load process equipment including its auxiliaries, pumping systems, HVAC systems and its distribution line systems, compressed air systems, process line systems for kilns and furnaces, smart manufacturing systems, and building energy management systems. Complex EE projects include demand-side management (DSM) projects or any other innovative DSM schemes with the intention to reduce overall demand consumption in the grid, through EE measures being implemented by an electric distribution utility or ESCO.

Ablaza explained that the EE project proponent seeking DOE endorsement and BOI registration for fiscal incentives could either be a DOE-registered or DOE-certified ESCO, a third-party project developer (TPPD) or project special purpose vehicle, or a designated

establishment or energy end-user (for self-financed EE projects).

Engr. Joel Timajo, PH ABB Motion’s Tendering and Product Support Manager, showcased EE opportunities arising from the use of high-efficiency motors and drives. Timajo said that a long-term perspective that captures the total cost of ownership and energy utilization will lead users away from selecting motors on the sole basis of initial capital outlay. A low-efficiency and lower-costing motor, irrespective of its rating, will consume its purchase price in energy costs during its first month of continuous operation, and downtime at a major plant might cost millions per day. On the other hand, reliable, high-efficiency motors deliver the lowest life-cycle costs and advanced diagnosis tools preserve and enhance equipment reliability and unplanned system downtime.

Energy Efficiency Practitioners Association of the Philippines (ENPAP 4.0 Inc.)  President Dr. Jeddper de Castro presented updates on the Design Guidelines on Energy-Conserving Buildings issued recently by DOE under a Department Circular. De Castro explained that specific building design guidelines relating to the building envelope, mechanical systems, electrical systems (such as motors) and renewable energy systems, will help building occupants achieve energy-efficient utilization without compromising the comfort, safety and health of occupants.

The inaugural PH ABB Digital Summit, scheduled from 26-29 of July 2021, was a live virtual event showcasing the latest technology and emerging trends in sustainability and energy efficiency across buildings, transport and renewable energy segments and comprising of live fora, technical webinars, virtual factory tour and product demonstrations and launches.

Both local and global ABB experts, and guest speakers from the Philippine Green Building Council, Department of Energy, Philippine Energy Efficiency Alliance, Electric Vehicles Association of the Philippines, and the Energy Efficiency Practitioners Association of the Philippines (ENPAP 4.0 Inc.) shared market knowledge on the latest trends and innovative solutions and business models during the digital summit.

The PH ABB Digital Summit kicked off its first day on 26 July 2021 with a focal event on smart building solutions and market trends. Day 2 dived deeply into the e-mobility market, its technologies and opportunities. Day 3 presented various ABB solutions relating to power protection, power quality management, automatic transfer switches, digital medium voltage switchgear and a factory tour. Day 4 hosted the EE forum and a separate session on digital solutions for renewable energy.

PH ABB Technical and Design Promotions Specialist Job R. Mayo IV served as Moderator of the Day 4 EE Forum. PH ABB Country Communications Manager Barbette Atienza-Soliven managed the planning, design and implementation of the digital event.

ABB is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Its local subsidiary, PH ABB, is an active Regular B member of PE2.

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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