By Ram Christian S. Augustine
The Energy Efficiency (EE) industry says it expects to approve guidelines in the second half of 2022 that will clarify the functions of the Republic Act No. 11285, or the Energy Efficiency and Conservation (EEC) Act.
In a Viber message, President of the Philippine Energy Efficiency Alliance (PE2) Alexander D. Ablaza says clear rules will allow developers to plan their projects more efficiently, especially once energy testing methods have been outlined.
Mr Ablaza said the industry also needed to issue “more granular policies” on the procurement and financing of energy service companies (ESCO) performance contracts.
He said he hoped the policy would be clarified for public-private partnership (PPP) transactions and joint venture (JV) agreements that are specifically designed for public sector EE projects.
PE2 is awaiting Board of Investment approval for Level III reclassification of all EE projects, be they strategic or complex, which Mr Ablaza said would help bridge the estimated P12.2-trillion “investment gap” through a proposal. Incentive framework for third party investors.
The Strategic Investment Priorities Plan (SIPP), which regulates the type of investment preferred for tax breaks, classifies third tier investment as “important for the structural transformation of the economy and the industrial revolution”.
Prior to the passage of RA 11285, the number of qualified energy-intensive industries implementing EE projects was limited due to the absence of a mandatory energy efficiency and conservation policy framework.
With the implementation of the EEC Act, designated organizations (DEs) are instructed to install energy management systems to become more efficient users of energy.
PE2 expects the growing proportion of DEs to be more aware this year “and within the next five years” or to comply with their EE obligations.
The company will host its second Energy Efficiency Day conference on April 20-21, to promote the latest EE market developments and innovations.
PE2 is positioning its services as a primary resource or “first fuel” as the Philippines shifts to clean energy in response to annual deficits during the dry season and rising fuel prices due to the Russia-Ukraine war.
“This year’s event will focus more on climate finance, energy service companies (ESCO) performance agreements and third party investment models,” Mr Ablaza added.
The webinar will consist of two half-day sessionssions