PE2’s Ablaza pushes ESCO, PPP and JV modalities among Mindanao LGUs and ECs

Date Published: 
July 24, 2020
  • Screenshots from the EE&C Virtual Forum for Local Development in Mindanao on 24 July 2020 with financing session speakers (top row, L-R) Diana G. Connett of ADB, Anita C. Salayon of DBP, Nilo Geroche of DOE-MFO, and Alexander Ablaza of PE2 (2nd row, left). (PE2 screenshots by Luigi Eusebio)
    Screenshots from the EE&C Virtual Forum for Local Development in Mindanao on 24 July 2020 with financing session speakers (top row, L-R) Diana G. Connett of ADB, Anita C. Salayon of DBP, Nilo Geroche of DOE-MFO, and Alexander Ablaza of PE2 (2nd row, left). (PE2 screenshots by Luigi Eusebio)

MAKATI CITY, 24 July 2020 –Philippine Energy Efficiency Alliance (PE2) president Alexander Ablaza, as energy efficiency expert of the Asian Development Bank (ADB), presented earlier today innovative financing modalities available to local government units (LGUs) and other public entities for the implementation of energy efficiency and conservation (EE&C) projects in the public sector during the two-day Energy Efficiency And Conservation Virtual Forum For Local Development in Mindanao co-organized by the Department of Energy (DOE), the EU-funded Access to Sustainable Energy Programme (EU-ASEP), the ADB and the ASEP Clean Energy Living Laboratories (ASEP-CELLs).

The PE2 head spoke in the third session dedicated for financing options for EE&C projects. The session was chaired by Diana G. Connett of ADB, and opened by Director Nilo Geroche of the DOE Mindanao Field Office (MFO) and Undersecretary Marjorie Jalosjos of the Department of Interior and Local Government (DILG). Co-panelists included Von Merene Losloso of the Board of Investments (BOI) and Anita C. Salayon, SAVP and head of the E2SAVE program of the Development Bank of the Philippines (DBP).

Ablaza said, “Through 2040, an estimated PHP 8 trillion in energy efficiency capital will have to be mobilized through non-business-as-usual financing modalities such as energy service company (ESCO) performance contracting, public-private partnerships (PPP) and joint venture (JV) agreements enabled under the EE&C Act.” He also highlighted the imperative for the economy to position EE&C not only as a primary energy resource and infrastructure development, but also as a stimulus activity in a post-COVID economic recovery, citing the demonstrated ability of EE&C to generate 45% more jobs than the Build, Build, Build (BBB) infrastructure program for the same amount of investment or stimulus funding.

The first LGU Forum for Energy Efficiency Projects held from 11 to 12 November 2019 through a partnership with DOE, EU-ASEP and ADB focused on Metro Manila local governments. The inaugural forum gathered around 100 participants, composed of LGUs, financing institutions, national agencies, and other energy key players. The event also highlighted LGUs’ best practices such as Santa Rosa City’s portfolio of low-carbon initiatives, and Mandaluyong City’s green building ordinance.

This was followed by a Visayas EE&C forum in February 2020, gathering more than 100 energy and local government stakeholders in Mandaue City, Cebu. The forum also featured a side visit to Mandani Bay, 20-hectare mixed-use development which boasts of energy efficiency features.

The Mindanao Energy Efficiency and Conservation Forum for Local Development was planned to share with LGUs and other stakeholders the key features of the EEC Law and its IRR, discuss the development of Local Energy Plans, and address key challenges and needs going forward. LGUs’ energy management and reporting systems will need to be developed in collaboration with DOE and other national government agencies. Some key challenges include coordination among relevant institutions, sources of technical and financial capacity, and project development and resourcing at the local level.

Support to the three events were provided by EU-ASEP, ADB and ASEP-CELLS.

EU ASEP assists the Philippine government in reaching its electrification objectives and promote the Sustainable Energy for All Agenda. The EU has committed a grant of over PHP 3 billion to assist the Government of the Philippines to meet its rural electrification targets based on renewable energy, and to promote energy efficiency. The EU has earmarked a grant of EUR 66 million for ASEP out of the total Project cost of PHP 4.89 billion. ASEP’s main partner is the DOE.

ADB has been a long-time partner in the Philippines with contributions to milestone energy sector restructuring and efforts toward financial reform of the power sector, among many others. Through its renewable energy and EE programs completed from 2010 to 2015, ADB has contributed to a reduction in GHG emissions of 173,789 tons of CO2e per year in the Philippines. ADB is actively identifying further areas to support, especially in EE, island electrification, and multi-sector investments.

ASEP-CELLs is a project funded by the European Union and implemented by the Ateneo School of Government (ASoG) in partnership with Manila Observatory (MO), ICLEI-SEAS, Xavier University (XU) and University of San Carlos (USC). The project supports the DOE and EU in achieving 100% rural electrification through renewable energy, thus increasing the share of renewable energy in the Philippines’ energy mix, and promoting energy efficiency towards sustainable and inclusive growth. From 2019 to 2022, ASEP-CELLs’ contributions to the energy sector shall focus on its three pillars: knowledge management, capacity-building and advocacy.

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

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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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