PEZA supports Tier III reclassification of EE projects under SIPP / PE2 elects new board in GMM
MAKATI CITY, 20 May 2026 – Philippine Economic Zone Authority (PEZA) Acting Deputy Director General (DDG) for Policy and Planning Emmanuel D. Cortero attended as a guest speaker during the Philippine Energy Efficiency Alliance (PE2) General Membership Meeting (GMM) Networking Hour held at the Makati Diamond Residences.
In his speech, DDG Cortero underscored that energy efficiency has become a strategic imperative for industries worldwide to sustain productivity, strengthen investor confidence, and support long-term economic growth amid rising energy costs and climate challenges. He also highlighted the vital PEZA-PE2 partnership, formalized through a Memorandum of Understanding (MOU) signed in March 2026, which aims to accelerate the adoption of energy-efficient technologies and innovative energy systems across ecozones. Furthermore, he reiterated PEZA’s support for policy initiatives that promote green investments, including the proposed reclassification of energy efficiency as a Tier III activity under the Strategic Investment Priority Plan (SIPP).
As PEZA continues to advance smarter Eco-Industrial Parks through initiatives such as district cooling, tri-generation technologies, and alternative fuels like hydrogen, LNG, and LPG, DDG Cortero emphasized that “these efforts are actively laying the groundwork for reduced carbon emissions and improved energy efficiency.” He added that this vision closely aligns with President Ferdinand R. Marcos Jr.’s Bagong Pilipinas agenda, which champions a greener, investment-led economy.
In separate letters dated 27 March 2026, PE2 explained to both investment promotion agencies, the Board of Investments (BOI) and PEZA, why energy efficiency projects badly need to be reclassified as a Tier III domestic market activity. Especially during the default situation where the facility owner does not co-invest in energy efficiency project assets, energy service company (ESCO) and third-party project developer (TPPD) commercial operations are now growing longer – from the previous average of ten (10) year to the much longer twenty (20) year (in some cases stretching to twenty-five (25) year) contract durations. In such cases where commercial operations exceed ten (10) years in duration, the projects continue to experience negative cash flows (that is, net operating loss) through project years 6 to 9. For this reason, the 4-6-year ITH under Tier I and Tier II domestic market activities will not be useful to improve equity returns of the project. PE2 maintains its pre-2022 SIPP position that all energy efficiency projects be classified as a Tier III domestic market activity under CREATE MORE. PE2 added that the Tier II classification of energy efficiency under the 2022 SIPP was not sufficient to improve commercial viability of energy efficiency investments.
Before the networking event with DDG Cortero of PEZA, PE2 held its GMM, which was highlighted by the election of Trustees to serve the Board through mid-2028. At least 98.4% of PE2’s regular membership were represented in the GMM to elect Alexander Ablaza, Theresa Acedillo-Lapuz, William C. Alcantara, Richard Henrick I. Beltran, Jherald N. Casipit, Ma. Miranda C. Cordova, Jose O. de Jesus, Ledicia T. dela Cruz, Jean-Baptiste Dreanic, Carlos T. Fernando, Ireen Go-Catane, Raymond A. Marquez, Renato V. Navarrete, Rodolfo R. Peñalosa and Ruth Yu-Own to the PE2 Board of Trustees.
PE2 President Alexander Ablaza informed the membership on the Alliance’s three-point recommendations to BOI and PEZA for energy efficiency projects under the proposed 2025-2028 SIPP. He reported PE2’s collaborative activities with the Department of Energy (DOE), BOI, PEZA, Climate Change Commission, GIZ Philippines, Embassy of Sweden, Embassy of Slovenia, US Commercial Service and Terrapinn. Ablaza likewise announced emerging plans with PEZA for the ecozone roadshow, with Unilab Education for career development, with DOE for the Philippine Conference on Energy Efficiency and Conservation, with the Asia-Pacific ESCO Industry Alliance (APEIA) on the election of Ablaza as Chair of the recently established legal entity in Singapore and the upcoming PE2 Training Program Series 2026, with the initial training on the “Basics of Investment-Grade Energy Auditing” to be held from 1-2 June 2026.
With contributions from the PEZA Communications Office:
