PE2 recommends $1.1B energy efficiency funding in economic stimulus package

Date Published: 
April 30, 2020
  • PE2 president Alexander Ablaza addresses local government units in an EU-ASEP-ADB-DOE Energy Efficiency forum in ADB HQ in this 27 February 2020 file photo. (PE2 photo by Luigi Eusebio)
    PE2 president Alexander Ablaza addresses local government units in an EU-ASEP-ADB-DOE Energy Efficiency forum in ADB HQ in this 27 February 2020 file photo. (PE2 photo by Luigi Eusebio)

QUEZON CITY, 30 April 2020 – The Philippine Energy Efficiency Alliance (PE2) submitted earlier today its official comments to the Economic Stimulus Response Package (ESRP) Cluster of the Defeat COVID-19 Special Committee of the House of Representatives for the inclusion of a P55 B ($1.1 B) energy efficiency component of the economic recovery package under the proposed consolidated bill for the Philippine Economic Stimulus Act (PESA). PE2 president Alexander Ablaza directed the PE2 recommendations to the three co-chairpersons of the ESRP Cluster, namely, Rep. Joey S. Salceda, Rep. Sharon S. Garin and Rep. Stella Luz A. Quimbo, in response to their solicitation of comments from PE2 on 23 April 2020.

The PESA bill builds on Republic Act No. 11469, or the “Bayanihan to Heal as One Act” which was passed into law on 24 March 2020, but will only have a maximum effectivity of no more than three months.

The ESRP lawmakers explained to PE2 that the government will need to act with dispatch in order to institute an economic stimulus response program to mitigate the effects of COVID-19 to the local economy. For this reason, the ESRP Cluster of the House DCC is currently consolidating the two bills authored by Rep. Salceda and Rep. Quimbo.

Within hours of receiving the PE2 position statement, “Supporting the International Energy Agency’s Call to Include Energy Efficiency as Economic Stimulus,” on 23 April 2020, the three ESRP Cluster Co-Chairpersons shared with PE2: [1] National Stimulus Strategy authored by Rep. Joey Sartre Salceda; [2] Economy Moving Forwards as One Act authored by Rep. Stella Luz Quimbo; and,  [3] Proposed Consolidated bill of the above-mentioned bills.

Among the salient comments of PE2 were:

  • To “promote employment generating industries” was included in the declaration of policy.
  • The 2 government financial institutions, the Development Bank of the Philippines and the Land Bank of the Philippines, shall offer loans at concessional rates of interest to MSMEs or LGUs for the development of energy efficiency projects as improvements in the facilities of the MSMEs and LGUs.
  • The development of government energy efficiency projects, as defined in Republic Act No. 11285, as improvements in public buildings and facilities, will be a main component of the enhanced “Build, Build, Build” program.
  • The DOE will support the Congressional Oversight Committee for the energy efficiency component of the enhanced “Build, Build, Build” program.

In the position statement circulated earlier, PE2 reported that the International Energy Agency (IEA) released on 8 April 2020 its paper “Energy Efficiency and Economic Stimulus – IEA Strategic Considerations for Policy Makers.” PE2 fully supports the IEA recommendation that governments include energy efficiency as a major pillar of proposed economic stimulus packages as countries plan their recovery pathways from the COVID-19 impacts. PE2 cited the cost-effectivity, job-generating impacts, speed of implementation, and the market readiness of energy efficiency as economic stimulus compared to other infrastructure development and other economic activities eyed in the stimulus strategy.

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

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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