Perks for Efficient Energy Proposed

Date Published: 
September 7, 2019
  • Perks for Efficient Energy Proposed
    Governor Napoleon E. Concepcion of the Board of Investments (BOI) (Photo: DTI,

THE proposed implementing guidelines of a newly signed law is seeking incentives from the Board of Investments (BoI) for energy efficiency projects.

On April 12, 2019, President Duterte signed Republic Act 11285, otherwise known as the “Energy Efficiency and Conservation (EE&C) Act,” which shall establish a framework for energy efficiency and conservation in the country.

The Department of Energy (DoE) is currently preparing the implementing rules and regulations (IRR) of RA 11285.

Based on the draft IRR, the BoI shall include energy efficiency projects – or projects designed to reduce energy consumption and costs during operation and maintenance – in the annual investment priorities entitled to incentives as stipulated in Executive Order 226 or the Omnibus Investments Code of 1987, as amended, and any other applicable laws.

“After the lapse of such period, BOI shall review extension of inclusion of the energy efficiency projects in the investment priorities plan,” according to the draft guidelines.

An entity can avail fiscal incentives as long as their energy efficiency project, new or existing, must be certified as such by the DoE and registered with the BOI.

The Department of Finance, in coordination with the DoE and other concerned agencies, shall come up with applicable mechanisms for providing fiscal incentives under the law.

Moreover, the local government units may include energy efficiency projects in their respective investment priority areas and shall grant applicable incentives indicated in the Local Investment Incentives Plan to establishments with energy efficiency projects upon registration and compliance with their requirements.

Aside from that, the proposed guidelines said such projects shall also be entitled to non-fiscal incentives such as technical assistance from government agencies in the development and promotion of energy efficient technologies as well as awards and recognition for innovations in energy efficiency and conservation best practices.

These are some of the provisions outlined in the rules and regulations implementing RA 11285. The DoE is soliciting comments from all interested parties for the draft department circular containing the IRR of RA 11285.

The agency, through its Energy Utilization Management Bureau, will hold two public consultations next week for the proposed guidelines: September 10 at Cebu Parklane International Hotel, Cebu City and September 16 at Marquis Events Place, Bonifacio Global City, Taguig City.

Written/Posted by: 
Jordeene B. Lagare, The Manila Times, 7 September 2019

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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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