菲律宾能效和节能路线图- NATIONAL ENERGY EFFICIENCY AND CONSERVATION PLAN AND ROADMAP 2023-2050

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050i

DEPARTMENTOFENERGY

ENERGYUTILIZATIONMANAGEMENTBUREAU

inpartnershipwith

withthesupportof

i

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050

TABLEOFCONTENTS

EXECUTIVESUMMARY 1

BACKGROUND 1

THENATIONALENERGYEFFICIENCYANDCONSERVATIONPLAN 1

THEROADMAP2023-2050 1

Figure1:VisionandObjectivesstatementandpresentationfortheNEECP 2

GOVERNANCE 2

Figure2:GovernanceFrameworkoftheNEECP 2

ROLESANDRESPONSIBILITIES 3

DepartmentofEnergy(DOE) 3

BoardofInvestments(BOI) 3

CommissiononHigherEducation(CHED) 3

ClimateChangeCommission(CCC) 3

GovernanceCommissionforGOCCs(GCG) 3

GovernmentFinancialInstitutions(GFIs) 3

Inter-AgencyEnergyEfficiencyandConservationCommittee(IAEECC) 3

InsuranceCommission(IC) 3

LocalGovernmentUnits(LGUs) 3

TechnicalEducationandSkillsDevelopmentAuthority(TESDA 3

TARGETS 4

PROGRAMS 4

MONITORINGANDEVALUATION(M&E)FRAMEWORK 4

DATAGAPSANDLIMITATIONS 5

Figure3:NationalEnergyEfficiencyandConservationRoadmap2023-2050 5

BACKGROUND 1

COUNTRYCONTEXT 1

KeyDriversofEECinthePhilippines 1

EnergyConsumptioninthePhilippines 2

Figure4.TotalFinalEnergyConsumption(TFEC)bySource 2

EnergyIntensity 3

Figure5:EnergyIntensitymeasuredintermsofprimaryenergyandGDP,2000-2017(source:IEA,2020) 3

EnergyConsumptionbySector 3

EnergyOutlook 4

EECPOLICYANDLEGISLATIVEBACKGROUND 5

VISIONANDOBJECTIVES 8

GOVERNANCE 8

EnablingFrameworksoftheNEECP 9

ProvisionsoftheEECActrelatingtoNEECP 10

InstitutionalArrangements 11

Figure7:GovernanceFrameworkoftheNEECP 11

SECTORALTARGETS 14

Economy-wideTargets 14

SectoralStatusandTargets 14

SECTORALANDCROSS-SECTORALPROGRAM 24

INTRODUCTION 28

ENERGYDEMAND 28

DRIVERSOFENERGYEFFICIENCY 28

THEDEPARTMENTOFENERGY’SCOMMITMENTTO 28

ENERGYEFFICIENCYANDCONSERVATION 28

THEENERGYEFFICIENCYANDCONSERVATIONROADMAP2023-2050 29

ii

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050

PURPOSEOFTHISREPORT 29

INTENDEDUSEOFTHEDOCUMENT 29

APPROACH 29

METHODOLOGY 30

LIMITATIONS 30

STRUCTUREOFTHEREPORT 30

ENERGYEFFICIENCY&CONSERVATION(EEC)ROADMAP2023-2050 31

INTRODUCTIONTOTHEROADMAP 31

GOVERNMENTBODIESANDPROJECTS 31

DEMONSTRATINGTHEVIABILITYOFPROJECTS 31

APPLYINGLESSONSACROSSDIFFERENTSECTORS 31

COMMONPROGRAMS 31

CROSS-SECTORINITIATIVES 32

THEEECROADMAP2023-2050 33

BREAKDOWNOFDIFFERENTELEMENTSOFTHEROADMAP 34

DESCRIPTIONSOFTHEDIFFERENTELEMENTSMAKINGUPTHEROADMAP 35

Sectors 35

StrategicActions 35

ProgramorTheme 36

Short-,Medium-,andLong-TermTimescales 36

AssociatedorLinkedRoadmaps 37

EECROADMAP(2023-2050)BYSECTOR 38

DescriptionsandAssociatedActivitiesoftheStrategicActions 38

GOVERNMENT 39

Short-Term(2023-2024) 39

Medium-Term(2025-2028) 42

Long-Term(2029-2050) 43

COMMERCIAL 44

Short-Term(2023-2024) 44

Medium-Term(2025-2028) 45

Long-Term(2029-2050) 45

RESIDENTIAL 46

Short-Term(2023-2024) 46

Medium-Term(2025-2028) 47

Long-Term(2029-2050) 47

INDUSTRY 49

Short-Term(2023-2024) 49

Medium-Term(2025-2028) 51

Long-Term(2029-2050) 53

TRANSPORT 54

Short-Term(2023-2024) 54

Medium-Term(2025-2028) 55

Long-Term(2029-2050) 57

UTILITIES&ENDUSE 58

Medium-Term(2025-2028) 58

Long-Term(2029-2050) 59

CROSS-SECTOR 60

Short-Term(2023-2024) 60

Medium-Term(2025-2028) 64

Long-Term(2029-2050) 66

iii

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050

Abbreviations

AFETD

AlternativeFuelsandEnergyTechnologyDivision

AFF

AlternativeFuelsFund

BAU

BusinessasUsual

BEEC

BuildingEnergyEfficiencyCode

BEEI

BuildingEnergyEfficiencyIndex

BOI

BoardofInvestments

CCC

ClimateChangeCommission

CECO

CertifiedEnergyConservationOfficers

CEM

CertifiedEnergyManagers

CES

CleanEnergyScenario

CHED

CommissiononHigherEducation

DAP

DevelopmentAcademyofthePhilippines

DBM

DepartmentofBudgetandManagement

DBP

DevelopmentBankofPhilippines

DC

DepartmentCircular

DE

DesignatedEstablishment

DENR

DepartmentofEnvironmentandNaturalResources

DILG

DepartmentoftheInteriorandLocalGovernment

DO

DepartmentOrder

DOE

DepartmentofEnergy

DOF

DepartmentofFinance

DOST

DepartmentofScienceandTechnology

DOTr

DepartmentofTransport

DPWH

DepartmentofPublicWorksandHighways

DSM

Demand-SideManagement

DTI

DepartmentofTradeandIndustry

DU

DistributionUtilities

EA

EnergyAuditors

EC

ElectricCooperatives

EEE

ElectricalandElectronicEquipment

ELI

EfficientLightingInitiative

EPIMB

ElectricPowerIndustryManagementBureau

EPMPD

EnergyEfficiencyandConservationProgramsManagementandTechnologyPromotionDivision

EPPB

EnergyPolicyandPlanningBureau

EPRED

EnergyEfficiencyandConservationPerformanceRegulationandEnforcementDivision

EPSMD

EnergyEfficiencyandConservationPublicSectorManagementDivision

ERC

EnergyRegulatoryCommission

ERDB

EnergyResourcesDevelopmentBureau

ESCO

EnergyServiceCompany

EU-ASEP

EU-PhilippinesAccesstoSustainableEnergyPrograms

EUMB

EnergyUtilizationManagementBureau

EV

ElectricVehicle

EVCS

ElectricVehicleandChargingStations

FECRT

FuelConservationandEfficiencyinRoadTransport

FI

FinancialInstitution

GAD

GenderandDevelopment

GBR

GreenBuildingRating

GDP

GrossDomesticProduct

GEEP

GovernmentEnergyEfficiencyProjects

iv

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050

GEMP

GovernmentEnergyManagementPrograms

GHG

GreenhouseGas

GOCC

GovernmentOwnedandControlledCorporation

IAEECC

Inter-AgencyEnergyEfficiencyandConservationCommittee

IC

InsuranceCommission

IEA

InternationalEnergyAgency

IEC

InformationandEducationCampaign

IRR

ImplementingRulesandRegulations

LBP

LandbankofPhilippines

LCEP

LowCarbonEnergyPrograms

LEECP

LocalEnergyEfficiencyandConservationPlan

LGU

LocalGovernmentUnit

M&E

MonitoringandEvaluation

MC

MemorandumCircular

MEPP

MinimumEnergyPerformanceforProducts

MVE

Monitoring,VerificationandEnforcement

NDC

NationallyDeterminedContributions

NEA

NationalElectrificationAdministration

NEDA

NationalEconomicandDevelopmentAuthority

NEECOffice

NationalEnergyEfficiencyandConservationOffice

NEECD

NationalEnergyEfficiencyandConservationDatabase

NEECO

NationalEnergyEfficiencyandConservationOfficer

NEECP

NationalEnergyEfficiencyandConservationPlan

NGA

NationalGovernmentAgency

NPC

NationalPowerCorporation

NRLP

NationwideResidentialLightingPrograms

OIMB

OilIndustryManagementBureau

PCW

PhilippineCommissiononWomen

PDU

PowerDistributionUnits

PEEP

PhilippineEnergyEfficiencyPrograms

PELP

PhilippinesEnergyLabellingPrograms

PEZA

PhilippineEconomicZoneAuthority

PGBC

PhilippineGreenBuildingCouncil

PIA

PhilippineInformationAgency

PIEEP

PhilippineIndustrialEnergyEfficiencyProject

REMB

RenewableEnergyManagement

SME

Small,MediumEnterprise

SUCs

StateUniversitiesandColleges

TFEC

TotalFinalEnergyConsumption

UNIDO

UnitedNationsIndustrialDevelopmentOrganization

WEEE

WasteElectricalandElectronicEquipment

WMCRDS

WasteManagementCollection,RecyclingandDisposalStrategy

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-20501

ExecutiveSummary

Background

ThePhilippineshaswitnessedariseinenergyconsumption,drivenbyeconomicgrowthandagrowingpopulationinrecentyears.Thesetrendsaresettocontinue,withthetransportandindustrialsectorsparticularlydrivingtheincreaseinenergydemand.AlthoughthePhilippinescontinuestoperformwellcomparedtoitsASEANneighborsintermsofenergyintensity(thishasbeenattributed,atleastinparttohigh,un-subsidizedenergypricesandashifttowardsserviceandcommercialindustries),therateofdeclineinenergyintensityisslowing.ContinuedgrowthinGDP(ithasbeenaveraging6-7%annuallyoverthepastdecade,exceptfortheyear2020whichsawnegativeGDPgrowthduetotheCOVID-19pandemic)andtheenergy-intensiveindustrial,building/construction,andtransportsectorswillseeanaccelerationinenergydemandinthePhilippines.Thegrowthintheindustrialsectorisexpectedtogrowthefastestatanannualaverageof5.9%,orathree-foldincreaseinenergyusefrom2018to2040.Thisisdriveninpartbyfurthergovernmentalprogramsaimedtoboostdevelopmentsinthemanufacturingsector,andthe2018‘Build,Build,Build’initiativewhichwillhaveastronginfluenceonfurthergrowthintheconstructionindustry.1

Until2019,energyefficiencyactivitieshadgenerallybeenvoluntary,withfewincentivestosupportwidespreadadoption.Inearly2019,thelong-awaitedEnergyEfficiencyandConservationAct(EECAct)wasenacted,puttinginplacethecountry’sfirstlawspecificallyrelatingtoenergyefficiency.Theshiftfromvoluntarytomandatedactivity,throughtheintroductionoffinesaswellasincentives,islikelytohavesignificantimpactonenergyefficiencyaction.Thischangealsogivesinvestorsaclearindicationofthegovernment’scommitmenttoscalingupenergyefficiencyacrossallsectors.WhilethepassingoftheEECActisahugestepforwardforthePhilippinesGovernmentandDOE,thereisstillmuchworktobedonetoimplementitsprovisions.Itiscriticalthatcomprehensive,clear,andappropriatestrategiesandplansaredevelopedtoaccelerateimplementationandbuildinvestorconfidenceintheenergyefficiencymarket.

TheNationalEnergyEfficiencyandConservationPlan

TheNationalEnergyEfficiencyandConservationPlan(NEECP)isacomprehensiveframeworkandplanthatinstitutionalizesenergyefficiencyandconservationinthecountryacrosskeysectorsoftheeconomyinaccordancewiththeEECAct.Section4(z)oftheEECActstipulatesthattheNEECPshallsetoutthegovernancestructure,andprogramsforenergyefficiencyandconservationwithdefinednationaltargets,feasiblestrategies,andregularmonitoringandevaluation.TheplanisalsorequiredtoberegularlyreviewedandrevisedbyDOE.2

TheRoadmap2023-2050

TherevisedPhilippineEnergyEfficiencyandConservationRoadmap(2023-2050)(theRoadmap2023-2050)providesanupdatedoutlineofthestrategicplansandactionsforEECinthePhilippinesacrossallsectors,includingimplementingkeyprovisionsoftheEECAct,anditsaccompanyingImplementingRulesandRegulations(EEC-IRR).

TheRoadmapalignswiththeNEECPasitprovidesforthekeyprogramsforenergyefficiencyandconservationbysector,forwhichemissionsreductiontargetsandcostingshavebeendeveloped.CurrentlydraftedandunderreviewbytheDOE,theNEECPRecommendationsReportalignswithandbuildsonthedraftRoadmap,additionallyoutliningtheoverarchingstructuresandframeworksthatenablethestrategicactionsoftheRoadmaptobeachieved.ThisRecommendationReport'sstructurecomplieswiththeAct'srequirementsforgovernance,programs,targets,andmonitoringandevaluationwhilealsoattemptingtoestablishavisionfortheplan.Hereisadiscussionaboutthem.

1WorldBank(2021)Data:GDPgrowth(annual%)–Philippines,availablefrom

/indicator/NY.GDP.MKTP.KD.ZG?end=2020&locations=PH&start=2011

2PhilippinesRepublicActNo.11285-AnActInstitutionalizingEnergyEfficiencyandConservation,EnhancingTheEfficientUseOfEnergy,AndGrantingIncentivesToEnergyEfficiencyAndConservationProjects,page7

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-20502

program.

DevelopmentPartners/Donors

GOCCs,OtherGovernment

Agencies,Government

Buildings,StateUniversities

andCollegesetc.

CHED,TESDA

Industry

Associations

CEMsandCECOs

End-users(SmallPowerUtilitiesGroup(SPUG),SMEs,

DEs,residential&commercialusers/buildingsetc.)

Vision

ToestablishtheimplementationoftheEnergyEfficiencyandConservationActandinstitutionalizeenergyefficiencyandconservationasanationalwayoflifegearedtowardstheefficientandjudiciousutilizationofenergyacrossallsectors.

Objectives

TheobjectivesoftheNEECPareto:

•ProvideanationalframeworktoinstitutionalizetheEECAct.

•DefineandoutlineallEECprogramstobeimplemented,theirobjectivesandassociatedemissionreductiontargetsovervarioustimehorizons.

•ProvideagovernancestructurethatbringstogetherallkeystakeholdersanddefinetheirrespectiverolesinfulfillingtheprovisionsofEECAct.

•ProvideaMonitoringandEvaluation(M&E)frameworkagainstthestrategicactionsoftheNationalEECRoadmap2023-2050totrackperformanceagainstpre-definedtargetsandprovideabasisforlearningandimprovement.

Figure1:VisionandObjectivesstatementandpresentationfortheNEECP

Governance

AgovernancestructureiskeyonensuringclearlinesofcooperationandunderstandingofrespectiverolesintheNEECPimplementation.TheDOEwillcoordinatewithdifferentgovernmentagencies[NationalGovernmentAgencies(NGA),Government-OwnedandControlledCorporations(GOCC),andLocalGovernmentUnits(LGU)],privateorganizations,andotherstakeholdersfortheexecutionoftheplanand

CCC

IAEECC

DBM,DOF,DTI.DOST,

DOTr,DILG,DPWH,

NEDA

DOE

LGUs

GFIs,IC,BOI

ESCOs,Technology

Figure2:GovernanceFrameworkoftheNEECP

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-20503

RolesandResponsibilities

DepartmentofEnergy(DOE).TheDOEshallbetheleadagencyintheimplementationoftheEECActandtheEEC-IRR.Itshallberesponsiblefortheplanning,formulation,development,implementation,enforcement,andmonitoringofenergymanagementpoliciesandotherrelatedenergyefficiencyandconservationplansandprograms.

BoardofInvestments(BOI).TheBOIshallincludeenergyefficiencyprojects,asdefinedintheActandtheEEC-IRR,intheannualinvestmentprioritiesplanentitledtoincentivesprovidedunderExecutiveOrderNo.226,otherwiseknownastheOmnibusInvestmentsCodeof1987ofthePhilippines,asamended,andanyotherapplicablelawswithintheperiodprovidedintheActandtheEEC-IRR.Afterthelapseofsuchperiod,BOIshallreviewtheextensionofinclusionoftheenergyefficiencyprojectsintheinvestmentprioritiesplan.

CommissiononHigherEducation(CHED).TheCHEDshallintegrateintoexistingengineeringcurriculaappropriatecoursesrelatedtoenergymanagement.Toensurethatenergymanagementcoursesshallbeofferedintheappropriateengineeringcourses,theCHEDshallprescribetheseenergymanagementcoursesaspartoftherelevantengineeringcourses'respectiveminimumcurriculumthroughtheappropriateCHEDMemorandumOrder.TheCHEDshallcoordinatewiththeDOEindeterminingtheappropriatecoursesinwhichtheenergymanagementcoursesshallbeoffered.

ClimateChangeCommission(CCC).TheCCCshallcollaboratewiththeDOEandothergovernmentagenciesinestablishingtargets,determiningstrategiesalignedwiththeNEECP,andmonitoringandrecordingallgreenhousegasemissionreductionsresultingfromenergyefficiencyandconservationprojects.

GovernanceCommissionforGOCCs(GCG).PursuanttoitsfunctionofevaluatingtheperformanceofGOCCsunderRepublicActNo.10149otherwiseknownastheGOCCGovernanceActof2011,theGCGshallincorporateenergyefficiencyasafactorinevaluatingtheperformanceofGOCCs.Forthispurpose,theGCGshallincludeenergyefficiencyinthePerformanceEvaluationSystem(PES)underGCGMemorandumCircularNo.2013-02,inaccordancewiththenationaltargetsforenergyefficiencyandconservationundertheNationalEE&CPlan.

GovernmentFinancialInstitutions(GFIs).TheGFIsshallsetasidelendingfundsforenergyefficiencyprojectsatconcessionalratesofinteresttoattractprivatesectorinvestments.TheGFIsshall,incollaborationwiththeInsuranceCommission,ensuretheavailabilityofcompatibleguaranteeorinsuranceproductsthatwouldmitigatecreditrisksassociatedwithenergyefficiencyinvestmentsinsmallandmedium-sizedenterprisesandperformancerisksrelatedtoenergyefficiencysolutionsdevelopedbyESCOs,engineeringcompanies,andothertechnologyproviders.

Inter-AgencyEnergyEfficiencyandConservationCommittee(IAEECC).Evaluateandapprovegovernmentenergyefficiencyprojects,asdefinedundertheActandtheEEC-IRR,andprovidestrategicdirectionintheimplementationoftheGEMP.

InsuranceCommission(IC).TheICshall,incollaborationwiththeGFIs,ensuretheavailabilityofcompatibleguaranteedproductsthatwouldmitigatethecreditrisksassociatedwithenergyefficiencyinvestmentsinsmallandmedium-sizedenterprisesandperformancerisksrelatedtotheenergyefficiencysolutionsdevelopedbyESCOs,engineeringcompanies,andothertechnologyproviders.

LocalGovernmentUnits(LGUs).LGUsshallassisttheDOEinmonitoringthecomplianceofdesignatedestablishmentswiththeirobligationsundertheActandtheEEC-IRRforinputintheNationalEE&CDatabase.

TechnicalEducationandSkillsDevelopmentAuthority(TESDA).TheTESDAshall,incollaborationwiththeDOEandothertrainingandserviceinstitutions,developtrainingregulationsforthecertificationofenergyefficiencyandconservationofficers.ItshallensurethepromotionofenergyefficiencypracticesandrenewabletechnologiesthroughitsTechnicalVocationalEducationandTrainingPrograms.TheTESDAshallimplementskillstraining,assessment,andcertificationprogramsformechanics,technicians,installers,andoperatorsofenergyefficientandrenewableenergysystems.

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-20504

Targets

Basedondesk-basedresearchandthedatainputsfromDOE,carbonemissionssavingsandtargetswerederivedforeachsectorandprogram,acrosstheshort-,medium-,andlong-termtimehorizons.

Table1:Sectoraltarg

Sector

etsperProgramoverthe

Programs

short-,medium-,and

Short-Term

Emissions

Savings

(2023–2024)

long-term

Medium-Term

EmissionsSavings

(2025–2028)

Long-Term

Emissions

Savings

(2029–2050)

Government

GovernmentEnergy

ManagementPrograms

(GEMP)

1.87MtCO2e16.15%

3.31MtCO2e15.81%

25.06MtCO2e14.48%

Commercial

PhilippineEnergy

LabelingPrograms

(PELP)/Minimum

EnergyPerformancefor

Products(MEPP)

7.51MtCO2e16.15%

13.28MtCO2e15.81%

100.50MtCO2e14.48%

Residential

PELP/MEPPs

18.56MtCO2e34.65%

32.79MtCO2e31.66%

248.21MtCO2e23.17%

Industrial

PELP/MEPPs

17.43MtCO2e19.38%

30.81MtCO2e19.17%

233.18MtCO2e18.35%

Transport

FuelEfficiency

Standards(under

PELP)

Pendingdata

Pendingdata

Pendingdata

ElectricVehicleand

ChargingStations

(EVCS)

Pendingdata

Pendingdata

Pendingdata

10%EVpenetrationby2040

N/A

N/A

116.54MtCO2e8.22%

Utilities&Enduse

PowerSectorEfficiency

4.34MtCO2e27.95%

7.53MtCO2e27.95%

54.03MtCO2e27.95%

Programs

CloselytiedtotheNEECPistheNationalEECRoadmap2017-2040.Inrecentyears,theRoadmap2017-2040guidedthePhilippinesandDOEinEECandincorporatedvarioussector-specificandcross-sectorprogramsforEEC.TheseprogramshadbeenearlierprioritizedbyDOE,withspecificactions/activitiestiedtothem.WiththepassingoftheEECActandtheintroductionofnewprovisions,theRoadmaphassincebeenupdatedbytheASEANLowCarbonEnergyPrograms(LCEP)withnewprogramsasstipulatedintheEECAct,thusformingtheRoadmap2023-2050aspresentedinFigure3.

MonitoringandEvaluation(M&E)Framework

Muchofaplan’ssuccesscanbeattributedtoadetailedM&Eframeworkthatallowsfortrackingofperformance,withwell-definedactivitiestiedtomeasurableperformanceindicatorsandtargetsthataretime-bound.Inthiscase,itisrecommendedthattheactivitiesreflectandalignwiththeprogramsoftheRoadmap2023-2050.Further,activitiesthatextendintothemediumorlong-termshouldincludeinterimtargetstofacilitateaphasedandstepwiseapproachtoachievingtargets.Inlinewithbestpractices,itisalsorecommendedthatstrategicactions/activitiesundereachEECProgramarefurtherassignedresponsibleentities,andabudgetthatwillinformDOEandrelevantdepartmentsinplanningofnecessaryresourceandmanpowerallocations.

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-20505

DataGapsandLimitations

ItisimportanttonotethatduetolimiteddataavailabilityandlimitedengagementswithDOEandother

stakeholders,therecommendationsinthisreportshallbereviewedandvalidatedbyDOE.

Figure3:NationalEnergyEfficiencyandConservationRoadmap2023-2050

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050

1

Background

ThissectionprovidesabackgroundofthePhilippines,driversofEECanditssectoralenergyconsumptionbytotalfinalenergyconsumption(TFEC),andtheoveralltrajectoryofenergyinthecomingyears.

CountryContext

ThePhilippineshaswitnessedariseinenergyconsumption,drivenbyeconomicgrowthandagrowingpopulationinrecentyears.Thesetrendsaresettocontinue,withthetransportandindustrialsectorsparticularlydrivingtheincreaseinenergydemand.AlthoughthePhilippinescontinuestoperformwellcomparedtoitsASEANneighborsintermsofenergyintensity(thishasbeenattributed,atleastinparttohigh,un-subsidizedenergypricesandashifttowardsserviceandcommercialindustries),therateofdeclineinenergyintensityisslowing.ContinuedgrowthinGDP(ithasbeenaveraging6-7%3annuallyoverthepastdecade,exceptfortheyear2020whichsawnegativeGDPgrowthduetotheCOVID-19pandemic),andtheenergy-intensiveindustrial,building/construction,andtransportsectorswillseeanaccelerationinenergydemandinthePhilippines.Thegrowthintheindustrialsectorisexpectedtogrowthefastestatanannualaverageof5.9%orathree-foldincreaseinenergyusefrom2018to2040.Thisisdriveninpartbyfurthergovernmentalprogramsaimedtoboostdevelopmentsinthemanufacturingsector,andthe2018‘Build,Build,Build’initiativewhichwillhaveastronginfluenceonfurthergrowthintheconstructionindustry.

ThePhilippineshasastronghistoryofcommitmenttoenergyefficiency,datingbacktotheearly1990s.TheDepartmentofEnergyActof1992(RepublicAct7638)madeexplicittheaimfor“judiciousandefficientutilizationofenergy”acrossenergy-intensivesectors.In2004,theNationalEnergyEfficiencyConservationProgramwasadopted,whichservedastheframeworkguidingtheDOE’sstrategyforenergyefficiencyacrossallsectors.

Until2019,energyefficiencyactivitiesweregenerallyvoluntary,withfewincentivessupportingwidespreadadoption.Inearly2019,thelong-awaitedEnergyEfficiencyandConservationActwasenacted,puttinginplacethecountry’sfirstlawspecificallyrelatingtoenergyefficiency.Theshiftfromvoluntarytomandatedactivity,throughtheintroductionoffinesaswellasincentives,islikelytohaveasignificantimpactonenergyefficiencyaction.Thischangealsogivesinvestorsaclearindicationofthegovernment’scommitmenttoscalingupenergyefficiencyacrossallsectors.

WhilethepassingoftheLawisahugestepforwardforthePhilippinesGovernmentandDOE,thereisstillmuchworktobedonetoimplementitsprovisions.Itiscriticalthatcomprehensive,clear,andappropriatestrategiesandplansaredevelopedtoaccelerateimplementationandbuildinvestorconfidenceintheenergyefficiencymarket.

KeyDriversofEECinthePhilippines

Energyefficiencyandconservationstrategiesandpolicieshavebecomeaglobalnecessity.TheInternationalEnergyAgency(IEA)hasmadeenergyefficiencyatoppriority,consideringitasthefirstfuel.ThisisespeciallyrelevantforthePhilippinesasenergydemandisincreasingduetohighratesofurbanizationandafast-growingpopulation.Energyefficiencyresultsinlowerpollution,enhancedenergysecurity,andlowerenergycosts,makingitkeytosupportingeconomicgrowth.Energyefficiencyalsoplaysanimportantroleindecouplingeconomicgrowthfromenergydemandandemissions,makingitcriticaltosustainabledevelopmentinthePhilippines.ThisisalignedwiththeupdatedPhilippineDevelopmentPlan(2023-2028)thatlaysdownmedium-termplansgearedtowardsthelong-termvisionofbuildingaresilientsocietywithsustainedfuturegrowth.

ThePhilippineshasoneofthehighestenergypricesinAsia.Forbusinesses,reducingenergycoststhroughtheimplementationofenergy-efficientproductshasthepotentialtofreeupcapital,whichtheycanusetofurthergrowtheirorganizationandstimulatewidereconomicdevelopment.Reducingenergycostsinhouseholdswouldenableincreasedspending.

3

/indicator/NY.GDP.MKTP.KD.ZG?end=2020&locations=PH&start=2011

NationalEnergyEfficiencyandConservationPlanandRoadmap2023-2050

2

EnergyefficiencyisoneoftheeightpriorityareasofthenewDOEadministration.Asanetenergyimporterwithonlymoderateconventionalenergyresource