BUSINESS OPPORTUNITIES UNDER THE

ENERGY EFFICIENCY AND CONSERVATION ACT

DIR. PATRICK T. AQUINO, CESO III

Department of Energy
REPUBLIC ACT 11285
ENERGY EFFICIENCY AND
CONSERVATION ACT
The EE&C Act institutionalizes energy efficiency
and conservation, enhance the efficient use of
energy, and grant incentives to energy
efficiency and conservation projects.
ENERGY SERVICE COMPANY (ESCO) AS A NEW BUSINESS MARKET

Energy Service DOE Department Circular DC2020-09-0018

Guidelines in the Administration, Classification and
Company (ESCO) Certification of Energy Service Company (ESCO)
ESCO are partners in
Section 4 of DC2020-09-0018 allows full
compliance with the EEC Act,
foreign-owned ESCO to register with the
as they offer multi-technology
DOE given that they are duly registered
services and goods towards
with the Securities and Exchange
developing and designing EE
Commission or the Department of Trade
projects, delivering and
and Industry or licensed as a branch
guaranteeing energy savings,
office by the Securities and Exchange
and ensuring cost-effective
Commission, in compliance with the
and optimal performance.
applicable laws of the Philippines,
including Republic Act No. 11232 or the
Revised Corporation Code and Republic
Services offered by ESCO: Act No. 7042 or the "Foreign Investment
Act”
• Energy audit (detailed and investment grade)
• energy supply and management

29
• energy financing
• technical engineering expertise and Registered ESCOs to
consultancy
• equipment supply, installation, operation,
DOE as of October
maintenance and upgrade, and monitoring 2021
and verification of performance and savings Opportunities under the Energy Efficiency and Conservation Act 3
 ESCO ON DISTRICT COOLING SYSTEM DEVELOPMENT

District Cooling System (DCS)

Business Opportunities on District
Cooling System Development

- The introduction of energy efficient chillers to

Philippine Market
- Collaborations between overseas investors, local real
estate developers, and electricity utilities
- Huge market potential with the current booming
infrastructure industries

- Centralized cooling network which utilizes chilled water as the main

coolant that will be distributed to more than one facility

- Cleaner system with less emission and little to no use of refrigerant

- Large scale multi-energy system which can be integrated to several

energy sources (including renewable energy) Opportunities under the Energy Efficiency and Conservation Act 4
 ENERGY SERVICE COMPANY (ESCO) AS A NEW BUSINESS MARKET

EE PROJECTS BY ENERGY SERVICE COMPANIES

(As of April 2021)

Project Cost in
Energy Saving
Project Name Million Pesos
Total Investment Cost of (₱)
(kWh/year)

₱689.05M
Office Building Air-cooled
77.0 2,565,696
Conversion
Chilled Water Plant
47.5 1,939,798
Retrofit
Water-cooled Packaged A/C System
101.5 2,674,736
Retrofit
on EE projects of undertaken by the registered Energy Service Replacement of Centrifugal Water-
19.0 635,000
Cooled Chiller
Companies in 2020.
Chilled Water Plant and BMS Retrofit 258.0 5,212,000

Conversion of Air-cooled Chiller

34.51 4,380,000
Total Energy Savings of Plant to Water-cooled Chiller Plant

₱209.8M
Industrial Refrigeration Retrofit 56.0 2,564,640
1 Replacement of standard efficiency
motors (SEM) with high efficiency 82.16 3,010,200.00
motors (HEM)
Lighting System Retrofit 13.38 330,341.52
23,312,411.52
Total ₱689.05M
based on the kWh per year saving of the ESCO EE projects kWh/year
Note: The above-mentioned Sample EE Projects were undertaken by Energy Service Companies (ESCOs) with
the corresponding investment cost and equivalent energy savings.

Opportunities under the Energy Efficiency and Conservation Act 5

1
23,312,411.52 kWh x Php9/kWh = ₱209,811,703.68 of energy savings. Rate Assumption: ₱9/kWh
 ENERGY CONSERVING DESIGN FOR BUILDINGS
DEPARTMENT CIRCULAR NO. DC2020-12-0026
Adoption of the Guidelines on Energy Conserving Design of Buildings

To encourage and promote the energy conserving design of buildings and

their services to reduce the use of energy with due regard to the cost
effectiveness, building function, comfort, health, safety, and productivity of
the occupants.

Electrical loads of at Building

least 112.5 kVA or Envelope
with at least 10,000 m2
total gross floor area Electrical
Systems

Mechanical
Systems

Energy Efficient Buildings will boost the

demand for energy efficient materials and
technologies that will help to meet the
Opportunities under the Energy Efficiency and Conservation Act 6
requirements under the guidelines.
 ENERGY CONSERVING DESIGN FOR BUILDINGS

COVERAGE/APPLICATION
Application:

New buildings and their systems and any expansion and/or

modification of existing buildings or systems with designed
connected electrical loads of at least 112.5 kWA or has at least
10,000 m2 Total Gross Floor Area (TGFA)

Exemption:

Areas with industrial/ manufacturing process.

Business Opportunities
Section III. Application and Exemption.
- Construction project
Building Envelope requirements are development
mandatory for air-conditioned buildings - Construction site management
but recommendatory for non-air- - Interior Designing
conditioned ones. - Supply of Construction Materials
- Supply of Equipment and Systems

Opportunities under the Energy Efficiency and Conservation Act 7

 ENERGY CONSERVING DESIGN FOR BUILDINGS

RENEWABLE ENERGY (RE) SYSTEMS AND EQUIPMENT

- Covered buildings shall source, initially, a minimum of one

percent (1%) of their projected annual energy requirements to
reduce demand for commercial power through the installation
of any or a combination or all of the following:

• RE Power Supply Systems

• Solar Water Heaters
• Solar Cooling Systems
• Solar-Powered Lighting Systems
• Any other similar system or equipment

- Availing of the Green Energy Option Program by a Building shall

also satisfy the above stated requirement

Opportunities under the Energy Efficiency and Conservation Act 8

 DESIGNATED ESTABLISHMENTS

Designated Establishments
Refers to a private entity identified as energy Sectors under
intensive industries. Designated Establishments:

At least 100,000 kWhE but less

Other DE than 500,000 kWhE
Annual Commercial
500,001 kWhE but less than
Energy Type 1 DE 4,000,000 kWhE
Consumption*

Type 2 DE 4,000,001 kWhE and above

Industrial

Memorandum Circular No. MC2020-05-0001 Transport

Directing All Designated Establishments under Commercial, Industrial
and Transport Sectors to Submit Energy Consumption Reports

*kWhE – to read as Kilowatt-Hour Equivalent

* Combination of Fuel and Electricity
Opportunities under the Energy Efficiency and Conservation Act 10
 DESIGNATED ESTABLISHMENTS

Designated Establishments
Refers to a private entity identified as energy Business Opportunities under
intensive industries. Designated Establishments

At least 100,000 kWhE but less

Other DE than 500,000 kWhE
Annual - Energy Management System
500,001 kWhE but less than - Energy Efficiency Projects and
Energy Type 1 DE 4,000,000 kWhE Measures
Consumption*
- Building Management
Systems/Technology
Type 2 DE 4,000,001 kWhE and above
- Building Cooling
enhancements/improvements
- Energy Audit

Memorandum Circular No. MC2020-05-0001

Directing All Designated Establishments under Commercial, Industrial
and Transport Sectors to Submit Energy Consumption Reports

*kWhE – to read as Kilowatt-Hour Equivalent

* Combination of Fuel and Electricity
 FISCAL INCENTIVES FOR ENERGY EFFICIENCY PROJECTS
FISCAL INCENTIVES

ENDORSEMENT OF EE PROJECTS
TO BOI FOR FISCAL INCENTIVES
This Department Circular shall establish the guidelines, rules
and procedures in the endorsement of energy efficiency Department Circular No. DC2021-05-0011
projects to the BOI for registration in order to grant fiscal Guidelines on the Endorsement of Energy Efficiency
incentives to the proponents for the said project. Projects to the Board of Investments (BOI) Fiscal Incentives

Simple Energy Efficiency Projects - involves Complex Energy Efficiency Projects - involves new
new installation, upgrading or retrofitting of installation, retrofitting or upgrading of system or a
a specific equipment or devices in the combination of systems. This includes Demand Side
system such as but not limited to lighting Management (DSM) Projects or any other
retrofit, automated lighting control system innovative DSM schemes with the intention to lower
or smart control system, HVAC upgrades, down overall demand consumption in the grid,
boiler replacement, and other similar which project were being implemented by an
devices or equipment within a system. electric distribution utility or ESCO.

Opportunities under the Energy Efficiency and Conservation Act 12

 FISCAL INCENTIVES FOR ENERGY EFFICIENCY PROJECTS

ENERGY EFFICIENCY PROJECTS - designed to reduce energy consumption or costs by any

improvement, repair, alteration, or betterment of any building or facility, or any equipment,
fixture, or furnishing to be added to or used in any building, facility, or vehicle including the
manufacturing and provision of related services.

Project DOE Endorsement

Application 20 Days Processing Time to BOI

EVALUATION CRITERIA. EE projects should meet 15% savings threshold measured at the
boundary in order to access the following rates of Income Tax Holiday (ITH).
Annual Energy Savings ESCO or TPPD
at the Project Boundary Rate of ITH Self-Financed Amount of ITH

0% but registration None, but registration shall not be cancelled

Less than 15% BOI MC 2021-001 GENERAL
shall not be cancelled
POLICIES AND SPECIFIC
15% to 20% 50% 30% of cost installed EE&C equipment GUIDELINES TO IMPLEMENT
THE 2020 INVESTMENT
More than 20% and up to 25% 75% 40% of cost installed EE&C equipment PRIORITIES PLAN

More than 25% 100% 50% of cost installed EE&C equipment

All registered EEC projects shall be granted with Pioneer Incentives, if

the said EEC Project or Enterprise is registered as a Pioneer Project or Opportunities under the Energy Efficiency and Conservation Act 13
Enterprise in accordance with E.O. 226.
 PHILIPPINE ENERGY LABELING PROGRAM (PELP)

• The Philippine Energy Labeling Program

aims to initiate market transformation and
promote energy efficiency and through
the regulation of energy consuming
products.

• Initial coverage includes air conditioners,

refrigerating appliances, television sets
and lighting products.

Opportunities under the Energy Efficiency and Conservation Act 14

 PHILIPPINE ENERGY LABELING PROGRAM (PELP)
Compact Fluorescent Lamps (CFL)

COVERAGE ü 3 - 60 W with E27 and E14 base

Linear Fluorescent Lamp

Air Conditioner ü 10 - 65 W (halophosphate), 14 - 65 W (Triphosphor),

14 - 35 W ( Triphosphor T5)
ü ACU - Cooling capacity:
up to 50,000 kJ/hr. or 14kW Circular Fluorescent Lamp
ü 14 - 40 watts, 230 V
Lamp Ballasts (BAL)
* Refrigerators ü Electromagnetic and electronic ballasts
ü Net volume (up to two (2) lamps) for fluorescent lamps
capacity of 113
Light Emitting Diode (LED) Lamps
liters up to 600 liters
Non-directional LED*
ü E27 and E14 base

Televisions Linear LED*

ü Screen size up to 1,524 mm ü double-capped linear LED lamps with
(60 inches) with tuner (1) G5 and G13 caps or (2) caps

Opportunitiesunder
Opportunities underthethe Energy
Energy Efficiency
Efficiency and and Conservation
Conservation Act Act 15
 PHILIPPINE ENERGY LABELING PROGRAM
IMPORTATION OR DISTRIBUTION OF
ENERGY EFFICIENT PRODUCTS

Requirements:

• Company must comply with local business

registration requirements

• Products must comply with the prescribed

Minimum Energy Performance for Products
(MEPP)

• Company and products must be registered

under the PELP System

Opportunities under the Energy Efficiency and Conservation Act 16

 PHILIPPINE ENERGY LABELING PROGRAM

PELP REGISTRATION

Store
Ø Manufacturers
Ø Importers
Ø Distributors Company Product Label
Registration Registration Issuance

RENEW
Every 12 months or
Every product
UPDATE
update

Opportunitiesunder
Opportunities underthethe Energy
Energy Efficiency
Efficiency and and Conservation
Conservation Act Act 17
 PHILIPPINE ENERGY LABELING PROGRAM (PELP)
Rule XII – Section 59 of the EEC IRR
RESPONSIBILITIES
(Manufacturers, Importers, Distributors and Retailers)

Cooperate during the conduct of

Attach Energy Label enforcement, monitoring, and
verification activities.

Exhibit energy label

in all publications Submit annually information on the
(e.g., TV and newspaper ads,
leaflet/brochures, online trading
inventory of sales of ECPs
activities, etc.)

Opportunities under
Opportunities under the
the Energy
Energy Efficiency
Efficiency and and Conservation
Conservation Act Act 1818
INTER-AGENCY ENERGY EFFICIENCY AND CONSERVATION COMMITTEE
Composition of IAEECC

Created pursuant to Section 9 of the Act to evaluate and approve government energy efficiency projects and
to provide strategic direction in the implementation of the GEMP

Opportunities under the Energy Efficiency and Conservation Act 1919

GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)
Coverage of GEMP

Foreign Local Government

Service Posts Units (LGUs)
Government Owned
and Controlled Judicial branch
Corporations (GOCC)

Constitutional National Government

Commission Agencies

State Universities and

Colleges (SUC) GEMP Legislative Branch

Opportunities under the Energy Efficiency and Conservation Act 20

GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)
Overall Goal of GEMP

10%
Reduction on monthly
consumption of fuel
and electricity

GEMP

Opportunities under the Energy Efficiency and Conservation Act 21

 GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)

IAEECC Resolution No. 1, s. 2020

Directing All Government Agencies, including the Local Government Units (LGUs) and Foreign Service Posts, to
Comply with the Government Energy Management Program (GEMP), Ordering the Department of Energy to
Conduct Energy Audits and Spot checks, and Submit Proposed Improvements to the GEMP

ü Designation of Energy Efficiency and Conservation Officer and Energy Efficiency and
Conservation Focal Person

ü Setting the thermostat of AC units to 24 degrees Celsius

ü Conduct of energy audit, surveys, technical analysis, and other research activities

ü Improvement of Government Energy Management Program

ü Submission of Monthly Electricity and Fuel Consumption Report

Opportunities under the Energy Efficiency and Conservation Act 22

 GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)

IAEECC Resolution No. 2, s. 2021

Directing All Government Entities, including the Local Government Units (LGUs) and Foreign Service Posts, to Use
Energy Efficient Light Emitting Diode (LED) Lamps in Government Buildings and Facilities as a Requirement for
Compliance to the Government Energy Management Program

ü Compliance with the Implementing Guidelines of the PELP for Lighting Products of the
Department Circular No. DC2020-06-0015

ü Observance of the Use of the Energy Efficient LED Lamps with a minimum of 80 lumen
per watt (lm/W) for non-directional and 90 lm/W for linear type

ü Government entities shall ensure that only energy efficient LED lamps that are
compliant with the MEPP will be installed or used in their construction and retrofit
projects

Opportunities under the Energy Efficiency and Conservation Act 23

 GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)

ROLE OF GOVERNMENT ENTITIES

1 Establish the Energy Efficiency and Conservation Office

2 Designate an Energy Efficiency and Conservation Officer

3 Designate an Energy Efficiency and Conservation Focal Person

4 Develop and Implement the Local Energy Efficiency and

Conservation Plan - (LGU)

5 Develop and Submit the approved Energy Efficiency and

Conservation Program

6 Submit monthly electricity and fuel consumption reports.

7 Submit Annual Inventory (ACU, Lighting Fixtures, Other Office

Equipment) Opportunities under the Energy Efficiency and Conservation Act 24
 GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)

INCENTIVES AND RECOGNITIONS

Opportunities under the Energy Efficiency and Conservation Act 25

 GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP)

INCENTIVES & RECOGNITION

EE&C Best Practices

Opportunities under the Energy Efficiency and Conservation Act 26

 MINIMUM ENERGY PERFORMANCE IN THE TRANSPORT SECTOR
POLICIES AND ISSUANCES
Total Final Energy Consumption
R.A 11285 – Energy Efficiency and
Greenhouse gas emission
Conservation Act

28%
Total greenhouse gas (GHG) emissions from
Ø MEP level for electrical equipment, machinery,
and transport vehicles

energy-related activities increased by 4.1

percent from 2017.
DOE DC 2019-11-0014 – Implementing Rules
and Regulations of the R.A. 11285
Ø Energy labeling for transport vehicles
Ø Fuel economy rating scale

Road Transport Ø Fuel economy label

88% DOE DC 2020-10-0023 – Prescribing Policy

Framework for the Development of the Fuel
Economy Rating, Fuel Economy Performance
and Related Energy Efficiency and
Fuel Consumption Conservation Policies for the Transport Sector
Use of Oil

49%
and Other Support Infrastructures

Oil products
36%
Transport Sector Opportunities under the Energy Efficiency and Conservation Act 2727
 ENERGY EFFICIENCY IN THE TRANSPORT SECTOR

Projects/Initiatives for EV and EV Charging Stations

Charging Stations for EV

1. Office of the President
2. Department of Energy
Non-Project Grant Aid (NPGA) Market Transformation through
3. Department of Science and
for the Introduction of Japanese the Introduction of Energy Efficient
Technology
Advanced Products and Its Electric Vehicles (E-Trike) Project
System (Next-Generation
Vehicles Package) Opportunities under the Energy Efficiency and Conservation Act 28
 ENERGY EFFICIENCY IN THE TRANSPORT SECTOR

Projects/Initiatives for EV and EV Charging Stations

• Demonstration of Fast EV Chargers

• Development of Emergency Response Protocol for alternative fueled vehicles (AFVs),
which will be adopted by the regional BFP sub-units to respond on the issues and
concerns including EVs
• Development of certification protocol for the Minimum Energy Performance (MEP) for
Electric Vehicle Charging Station (EVCS)
• Development of TESDA-aligned Electric Vehicle Technician Course Module with a
National Certification Level II (NC II)
• Research and Development of fuel cell powered vehicles
• Promotional Activities – Information, Education and Communication Campaign
Opportunities under the Energy Efficiency and Conservation Act 29
 ELECTRIC VS CONVENTIONAL VEHICLES SCENARIO

No. of EVs vs Conventional Vehicles Registered (2010-2019)

11,950
Electric Vehicles (0.09%)
11,043
eTrike/
eMotorcycle
595
eUtility
Vehicles
260
eCars

12,713,355
Conventional Vehicles (99.91%)
3
eBus
49
Others
eSUV, eTruck

Opportunities under the Energy Efficiency and Conservation Act 30

 ELECTRIC VS CONVENTIONAL VEHICLES SCENARIO

Global Activity to Phase Out Internal Combustion Engine Vehicles

7.2million
2019 World BEV stock

36.0%
Global electric vehicle stock grows annually, reaching to 245 million
vehicles in 2030. (excluding two/three wheelers)

26.0 Million
Passenger EV sales will jump from 1.7 million in 2020 to 26 million
in 2030

28.0%
Philippine Energy Plan 2018-2040
Clean Energy Scenario

10.0% 5.0%
Alternative Fuel Vehicles
to be mainstreamed in
The electric vehicle share of total vehicles sales will increase up to
the transport sector. 28% in 2030
aggregate energy savings - Deploy applicable
penetration rate for electric vehicles for Source: https://www.automotiveworld.com/news-releases
from oil and electricity by AFET for transport and
road transport (motorcycles, cars,
jeepneys) by 2040 2040 non-transport sector Opportunities under the Energy Efficiency and Conservation Act 31
 POLICIES AND MEASURES IN THE ADOPTION OF ELECTRIC VEHICLES

DOE Issuances on EV and EVCS

DC2017-11-0011 Proposed Department Circular on EVCS
Ø Retail outlets may install electric vehicle charging Scope: Covers activities related to the development,
facilities, provided that safety controls are in place for the establishment, use, supply, distribution, and the operation of EVCS
operation of the EVCS.

DC2020-02-0003 Ø EVCS classifications compliant to the requirements of PNS

Ø DUs may establish/facilitate the establishment of
Ø EVCS Dedicated Locations
charging stations. Private and government instrumentalities
can install charging stations under a non-regulatory pricing Ø EVCS Energy Label and Marking Requirements
and market-based environment.
Ø Endorsement to the DTI-BOI for the
DC2020-10-0023 availment of fiscal incentives as provided
Ø Provides the development and operation of EV and under EO 226
EVCS to be structured for safe operation and adoption of
this technology.

Opportunities under the Energy Efficiency and Conservation Act 32

 POLICIES AND MEASURES IN THE ADOPTION OF ELECTRIC VEHICLES

Incentives for EV related projects

Tax Reform for Acceleration and Inclusion (TRAIN)
Ø Excise Tax Incentives
Senate Bill 1382 and proposed House
Bill 4075
Ø Pure Electric Vehicles (EV) shall be exempt from the excise tax
on automobiles. Hybrid Vehicles shall be subject to fifty percent Electric Vehicle and Charging Stations Act
(50%) of the applicable excise tax rates on automobiles.
1. Promote cleaner and more efficient mode of
Omnibus Investment Code (Executive Order 226) transportation system.
2. Accelerate the adoption and mainstreaming of
Ø Manufacture of electric vehicles and parts & components,
electric vehicles (EVs) and EV support
Operation of Charging/Refueling Stations for Alternative Energy
infrastructure.
Vehicles 3. Mandatory 5% EV share in Corporate and
Ø Income Tax Holiday of 3-6 Years Government Fleets to be EV with a timeframe until
the entire fleet be electrified.
Ø Importation of Capital Equipment 4. Dedicated Parking Slots for EV in Private and Public
Buildings and Establishments.
5. Open access installation of charging stations in
Memorandum Order No. 50 Series of 2020 (The gasoline stations.
2020 Investment Priorities Plan)
Ø Include Charging/Refueling Stations for Alternative Energy
Vehicles Opportunities under the Energy Efficiency and Conservation Act 33
 ELECTRIC VEHICLE AND CHARGING STATIONS

Investment Opportunities in EV and EVCS

1. Construction of electric vehicle charging stations

particularly in parking areas, establishments and
offices.
2. Establishment of service shops for EVs
3. Establishment of testing laboratories for the safety
and efficient operation of EVs
4. Manufacture of EV and EV batteries
5. Programs/Projects for spent lithium-ion batteries
as energy storage for power and other
applications

Opportunities under the Energy Efficiency and Conservation Act 34

THANK YOU