PE2 proposes P 71M program for ESCO projects in MSMEs, seeks DOST-PCIEERD grant support

Date Published: 
June 3, 2021
  • PE2 proposes P 71M program for ESCO projects in MSMEs, seeks DOST-PCIEERD grant support
    (Images: DOST-PCIEERD, PE2)

MAKATI CITY, 3 June 2021 – Philippine Energy Efficiency Alliance (PE2) president Alexander Ablaza submitted earlier today a PHP 70.95 million program proposal to the Department of Science and Technology – Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD) primarily to demonstrate the crucial market role of energy service companies (ESCOs) in deploying energy efficiency (EE) technologies to deliver energy savings and technological capacities to capture energy consumption data for future energy load profile research and studies in the micro, small and medium enterprises (MSME) sector.

Entitled "PE2 Transitioning MSMEs through Low-carbon and Energy-efficient Technologies," the two-year program draws the combined impacts of a P 60 million grant from DOST-PCIEERD and PE2's P 10.95 million co-financing (from in-kind resources) to support the implementation of at least 3 ESCO projects hosted in MSME facilities. Because the market intersection between the ESCO and MSME sectors remains minimal, the program is intended to serve as an effective testbed for future replication across more ESCOs and more MSMEs. The PE2 program proposes to include the crafting of recommendations for science and technology (S&T) policy and other market barrier removal interventions to scale-up ESCO-led EE technology deployment in the MSME sector.

Three PE2 member ESCOs, EconoServ Solutions International, NextGen Innovations Phils., and Verne Energy Solutions are participating in the PE2 program. These ESCOs propose to deploy efficient refrigeration, energy recovery, high-efficiency motors, variable frequency drives, HVAC optimization, LED lighting, solar PV, smart meters, and facility-wide energy monitoring systems in facilities of MSMEs involved in food manufacturing, ice manufacturing, and logistics.

The PE2 portfolio of ESCO projects targets 941 MWh/yr in annual program energy savings and 643 tCO2e/yr in annual program GHG emission reduction.

Another active PE2 member, Climargy, donated its portfolio management expertise to PE2 for the preparation and submission of the PE2 proposal.

The PE2 submission of the Grants-in-Aid (GIA) Research and Development (R&D) Proposal for the Energy Sector was made in response to the DOST-PCIEERD Call for Proposals for 2023, which was opened on 3 May 2021.

In the PE2 cover letter, Ablaza said, “This pioneer ESCO-MSME program is scalable and replicable in the event that future programs can be supported by subsequent GIA funding from DOST-PCIEERD.” PE2 committed to mobilize PHP 10.95 million in in-kind resources from its participating ESCOs, Climargy and the PE2 secretariat to exceed the 15% counterpart funding commitment required by the DOST-PCIEERD Call for Proposals 2023.

About PE2

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

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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

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Beyond COVID-19: How governments, ESCOs and innovative financial modalities can mobilize energy efficiency capital through 2040

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