ENERGY EFFICIENCY AND CONSERVATION

Milestones
ROADMAP: and

Challenges

An  Energy  Efficiency  Roadmap    

for  the  Philippines  

Art  P.  Habitan  
2014-­‐30 Energy  Efficiency  and  Conserva7on  Division  
Department  of  Energy  
September  30,  2014  
BALI,  INDONESIA  
 CONTENTS  

A.  DOE’s  Current  Energy  Efficiency  and  Conserva7on  Ini7a7ves  

B.  The  Philippines  Energy  Efficiency  and  Conserva7on  Roadmap  

i.  The  Development  and  Objec5ves  of  the  2014-­‐2030  EE&C  Roadmap  

ii.  Milestones  and  Challenges  of  2014-­‐2030  EE&C  Roadmap  

2012  Final  Energy  Demand,  by  Sector  

Sector   kTOE   %  share  

 
Industry          5,808.14                              24.9    
Transport            8,359.01                              35.9    

Residen5al            5,983.88                              25.7    

Commercial            2,832.12                              12.2    

Agri.,  Fishery  &  Forestry                    318.77                                    1.4    

Total  Demand        23,301.92                      100.00    

Short Term Target (2013 –
2016)
Year Energy Deferred CO2
Saving Capacity Avoidance
(KTOE) (MW) (Million
Tons)
2012 4,350 1,341 8.2
2013 4,785 1,475 9.1
2014 5,264 1,622 10.0
2015 5,790 1,784 11.0
2016 6,369 1,963 12.1
ANNUAL AVE. ENERGY SAVING = 5,597 KTOE/Yr.
ANNUAL AVE. DEFERRED MW CAPACITY = 1,711 MW/Yr.
ANNUAL AVE. EMISSION REDUCTION EQUIVALENT = 10.6 KTCO2 /
Yr.
INDUSTRIAL  /  MANUFACTURING  SECTOR  
ü   High  Electricity  Cost  
ü   Inefficient    Process  Equipment  and  devices  
ü   Inefficient  Process  Opera5on  
ü   Lack  of  Electricity  supply  in  the  Grid  /  Localized  Power  Crisis  
ü   High  fixed  opera5ng  cost  due  to  increase  in  Electricity  Consump5on  
ü   Absence  of  an  Energy  Management  System  
ü   Compliance  to  Clean  Air  Act  
ü   Compliance  to  Company’s  Corporate  Social  Responsibility  (CSR)  to  protect  the  
environment  

RESIDENTIAL  /  HOUSEHOLD  SECTOR  

ü   High  Electricity  Cost  
ü   Inefficient  Ligh5ng  System,  Appliances  and  Equipment  
ü   Low  Family  Income  
ü   Lack  of  Electricity  supply  (Power  Capacity)  in  the  Grid  /  Localized  Power  Crisis  
ü   Increased  in  electricity  consump5on  
5
 BUILDING    SECTOR  
ü   High  Electricity  Cost  
ü   Inefficient    Ligh5ng  System,  A/C  System,  and  other  equipment  and  devices  
ü   Inefficient  opera5on  of  electrical  Loads  
ü   Lack  of  Electricity  supply  in  the  Grid  /  Localized  Power  Crisis  
ü   High  fixed  opera5ng  cost  due  to  increase  in  Electricity  Consump5on  
ü   Compliance  to  Clean  Air  Act  
ü   Compliance  to  Company’s  Corporate  Social  Responsibility  (CSR)  (Environmental  
Protec5on)  

TRANSPORT    SECTOR  
ü   High  Cost  of  petroleum  products  
MAJOR ENERGY ISSUES and POLICY
INITIATIVES •  Electric Industry Reform Act
(2001)
•  Government Energy
Management Program (2004)
•  Electric Power Crisis
Energy Conservation Act (1993)
Law (1980-1990)
Independent Power • Energy Efficiency and
Producers (IPPs) (1994) Conservation Bill (2014)
•  Department Order: DSM
Program (2014)
DSM Order
(1995)

• High World Oil Market Price

(2003)
•  High cost of Electricity (...2000)
World Oil Crisis /
Oil Embargo
(1973-1978)
Lack of Power Lack of Power
Supply Capacity Supply Capacity
(1991) (2015)
Status of the Philippine Energy
Efficiency and Conservation
Policies
I.  Status of Energy Efficiency Policies in the Philippines:
1)  Government Energy Management Program (GEMP): AOs
110, 110-A, 126)
2)  DOE Circular 93-03-05: Energy Consumption Monitoring
3)  DOE Circular 2008-09-0004: ESCO Accreditation System
4)  Energy Efficiency and Conservation Bill (16th Congress)
5)  The Philippine Energy Efficiency Roadmap

The  above  energy  efficiency  policies  were    currently  being  

implemented    by  the  Department  of  Energy  and  these  were  discussed  
in  the  next  following  slides.    
 Government Energy Management Program
(GEMP)
ADMINISTRATIVE ORDER NO. 110 - DIRECTING THE
INSTITUTIONALIZATION OF A GOVERNMENT ENERGY Savings from Sept 2005 to
MANAGEMENT PROGRAM (GEMP) March 2013:
Php  2  Billion  
The Government shall aim to reduce its monthly •  PhP  1.7  Billion  on  electricity    
consumption of electricity (in kilowatt-hours) and petroleum •  PhP  274  Million  on  Fuel    
products (in liters) by at least ten percent (10%)

Administra7ve  Order  (A.O.)  

A.O.  110-­‐A   Amending  A.O.  110  s.  2004  –  Direc5ng  the  ins5tu5onaliza5on  
(s.2006)   of  a  government  energy  management  program.  

A.O.  183   Direc5ng  the  use  of  energy  efficient  ligh5ng/ligh5ng  system  
(s.2007)   (EELs)  in  government  facili5es.  
Strengthening  measures  to  address  the  extra  ordinary  increase  
A.O.  126   in  world  oil  prices,  direc5ng  the  enhanced  implementa5on  of  
the  governments  energy  conserva5on  program  .  
 Energy Consumption
DEPARTMENT CIRCULAR – 93-03-05
Monitoring
To all Industrial, Commercial and Transport Sectors: Establishments consuming 1 million LOE
annually are required to submit Quarterly Energy Consumption Report (QECR) to DOE. In
addition, establishments consuming 2 million LOE, apart from the QECR are required to
submit an Annual Energy Conservation Program Report (AECPR).

Recognition Award
DON EMILIO ABELLO ENERGY EFFICIENCY AWARD
Annual  recogni7on  given  to  companies  with  significant  energy  savings  achieved  thru  
the  implementa7on  of  EE&C  technologies  &  measures

FY 2013 Generated Saving:

56  million  liters  of  oil  equivalent  (LOE)  and  
monetary  savings  of  Php  2.4  billion  and  more  
than  90  million  kilograms  of  avoided  carbon  
dioxide  from  58  commercial  and  industrial  
establishments
ESCO Accreditation System

12
 Proposed Energy Efficiency and Conservation
Bill
(16th Congress)  
SBN  1085  by  Sen.  Teofisto  
  “TG”  Guigona  
 
SBN  167  by  Sen.  Sergio  R.  Osmena  
HBN  4393    by  Cong.  Reynaldo  V.  Umali  
 
 
Short  Title  -­‐  This  Act  shall  be  known  as  the  "Energy  
Efficiency  and  ConservaEon  Act  of  2014"
 
AN  ACT INSTITUTIONALIZING  ENERGY  EFFICIENCY  AND  
CONSERVATION,  ENHANCING  THE  EFFICIENT  USE  OF  
ENERGY,  AND  GRANTING  INCENTIVES  TO  ENERGY  
EFFICIENCY  AND  CONSERVATION  PROJECTS,  AND  FOR  
OTHER  PURPOSES
National Energy Efficiency and Conservation Program
(NEECP)

EE&C  Programs  /  Ac7vi7es    /  Project   Target  Energy  Demand  Sector(s)  

I.  Informa7on,  Educa7on  and   ▪Household  ▪  Commercial  Building  ▪  
Communica7on  Campaign  Program   Government  Building  ▪  Industrial▪  Transport  ▪      
II.  Standard  and  labeling  Program   ▪Household  ▪  Transport  ▪      
III.  Fuel  Economy  Run   ▪  Transport  ▪      
 
IV.  Government  Energy  Management   ▪  Government  Building  ▪  
Program  (GEMP)    
V.  Energy  Management  /  Energy  Audit   Commercial  Building  ▪  Government  Building  ▪  
Industrial▪    
VI.  Recogni7on  Award  Program    Commercial  Building  ▪  Government  Building  ▪  
Industrial▪  Transport  ▪    
v   ESCO  Accredita7on   ▪  Commercial  Building  ▪  Industrial  
v Philippine  Industrial  Energy  Project    ▪  Industrial▪  
(PIEEP)  
v Philippine  Energy  Efficiency  Project   ▪  Government  Building  ▪  Public  Ligh7ng  ▪  
(PEEP)     14
An  Energy  Efficiency  Roadmap    
for  the  Philippines  
2014-­‐30
B. The Philippines Energy Efficiency and Conservation Roadmap

Statements  of  Overall  Vision,  Objec7ves  and  Targets

 
This  Roadmap  guides  the  Philippines  in  building  an  energy-­‐
efficient  na5on,  and  in  making  energy  efficiency  and  
conserva5on  a  way  of  life  for  all  Filipinos.    Energy  efficiency  will  
advance  the  country’s  economic  development  and  help  ensure  
energy  security,  op5mal  energy  pricing  and  sustainable  energy  
systems.
 MILESTONE TARGET
 
 
Targets  are  set  in  the  context  of  strong  economic  growth  and  energy  demand  
growth  expected  during  the  period.    Demand  is  forecast  to  grow  by  78%  
between  2014  and  2030,  an  average  annual  growth  rate  of  3.5%;  transport  and  
industry  are  the  dominant  end  use  sectors.

The  Roadmap  include  a  number  of  key  components:

 

A.         Introductory  statements  of  Overall  Vision,  Clear  Objec7ves  

and  Measurable  Targets;  
B.         Short,  Medium  and  Long  term  poten7al  ac7ons,  both  Cross-­‐
cueng  and  by  Sector;  
C.         Plans  for  Measuring  and  Monitoring  Progress.  
 Energy Efficiency Roadmap for the Philippines, 2014-2030

Energy savings over

Short Term (2014-15) Medium Term Long Term (2021-30) baseline (by 2030)
(2016-20)
•  Vehicle Fuel Efficiency Standards
• Financial incentives for EE
developed all vehicles • EE programs beyond road
through vehicle taxes
• Risk management on vehicle transport (passenger and cargo
Transport conversion, e-vehicle programs
• Promotion of key vehicle
ships, aviation fuels) 25%
technologies
(?) • Reintegration of urban planning
• Driver education and fleet
• Re-formulate coordination and transport energy use
management programs ^(2014>)
mechanisms
2030
• Link existing training projects • Develop standards for motors Objective
with ESCO capacity building • Facilitate example models s:
• Develop sectoral focus programs including ESCOs, finance • Review inward investment rules
Industry to facilitate EE in energy intensive • Implement demand response for EE to remove distortions 15% 40%
industries (e.g. cement and programs reduction
construction, sugar) • Review of energy pricing in energy
intensity
• Enforceable minimum energy compared
• Develop role of utilities as key to 2010
standards for appliances, with a • Towards energy efficient housing
implementation partners and
Residential focus on space cooling and
information providers
precincts baseline
Buildings
refrigeration
• Specific EE programs for low-
• Inclusion of residential measures 20% Decrease
• Building envelope measures – in Building Code
cool roofs and insulation
income households d energy
consumpt
ion of
• Reformulate group to oversee EE • EE measures for inclusion in 1.6% per
measures in Building Code national building code • Incentive funds in place for EE, year
Commercial • Retro-commissioning program • Government demonstration including private financiers
against
for existing buildings retrofits to showcase ESCOs and
Buildings • Benchmarking and ratings for financing models
• Mandatory disclosure of
commercial building performance
25% baseline
building information &reporting • Promote green building ratings forecasts
Savings
of approx.
• Support passage of Enercon Bill • National strategy for efficiency in
• Establish EE database, data power supply sector 10,665
• Energy Efficiency and KTOE p.a.
Cross- collection regime, M&E framework • Stronger coordination with other
Conservation Center mandated
Sectoral • Establish enforcement regimes levels of government (LGUs)
and established (one-third
• Strengthen ESCO capacity • Regular reporting and monitoring of current
• Continue awareness-raising to commence
demand)
by 2030
Sending market signals to provide incentives for EE
Strengthening existing policy, advocacy, programs and institutional
structures
Harnessing private sector /partner finance
Enabling innovation and new technologies
2030 Objectives:

Ø  40% reduction in energy intensity compared to 2010

baseline

Ø  Decreased energy consumption of 1.6% per year

against baseline forecasts

Ø  Savings of approx. 10,665 KTOE p.a. (one-third of

current demand) by 2030
EE & C ROADMAP: MILESTONES (2014 – 2030)

SECTOR   TARGET  MILESTONES  

v   Vehicle  Fuel  Efficiency  Standards  developed  to  all  
vehicles  for  Labelling  (Road  Transport)  *  
v   E-­‐Vehicle  Program  *  
v   Reintegra5on  of  Urban  Planning  and  transport  
energy  use  
Transport   v   Promo5on  of  Fuel  Efficient  Vehicle  Technologies,  
Awareness  raising  (driver’s  educa5on)  to  all  public  
and  private  vehicle  drivers  *  
v   Extend  Energy  Efficiency  Program  to  include  
passenger  and  cargo  ship  vessels  including  the  
avia5on  industry  sector  
*  -­‐  Started  /  on-­‐going  
 EE&C ROAD MAP: (2014 -2030)

TRANSPORT SECTOR
Short Term Medium Term Long Term
(2014-15) (2016-20) (2021-30)

•  Vehicle Fuel • Financial

Transport
Efficiency incentives for • EE programs
Standards EE through beyond road
developed vehicle taxes transport
(passenger and
• Risk • Promotion of cargo ships,
management on key vehicle aviation fuels)
vehicle technologies
conversion, e- • Reintegration
vehicle • Driver of urban
programs education and planning and
fleet transport
• Re-formulate management energy use
coordination programs
mechanisms (2014>)

-­‐    Red  Text  Colour  denotes  that  there  was  an  iniBal  iniBaBves  going-­‐on  in  this  target  program  area.  
EE & C ROADMAP: MILESTONES (2014 – 2030)

SECTOR   TARGET  MILESTONES  

v   Develop  Energy  Service  Companies  (ESCO)  *  
v   Development  of  Minimum  Energy  Performance  
Standards  (MEPS)  for  Motors  
v   Consider  Demand  Response  as  an  “Op5on”    to  
conserve  energy  *  
Industrial   v   Incen5ve  for  the  use  of  energy  efficient  technologies  
(pioneering  energy  efficiency  projects)  
v   Awareness  campaign  to  promote  EE&C  in  the  
industry  (i.e.,  Energy  Management  System,  Systems  
Op5miza5on)  *  

*  -­‐  Started  /  on-­‐going  

22
 EE&C ROAD MAP: (2014 -2030)

INDUSTRIAL SECTOR
Short Term Medium Term Long Term
(2014-15) (2016-20) (2021-30)

Industry
• Develop standards
• Link existing • Review inward
for motors
training projects investment rules
with ESCO capacity for EE to remove
• Facilitate example
building distortions
models including
ESCOs, finance
• Develop sectoral
focus programs to
• Implement
facilitate EE in
Demand
energy intensive
Response (DR)
industries (e.g.
programs
cement and
construction,
• Review of energy
sugar)
pricing

Demand Response (DR) is defined as: “Changes in electric usage by end-use customers
from their normal consumption patterns in response to changes in the price of electricity
over time, or to incentive payments designed to induce lower electricity use at times of
high wholesale market prices or when system reliability is jeopardized.” (Source: FERC)
EE & C ROADMAP: MILESTONES (2014 – 2030)

SECTOR   TARGET  MILESTONES  

v   Enforce  “Minimum  Energy  Performance  
Standards”  (MEPS)  for  Home  Appliances  with  
emphasis  on  Space  Cooling  and  Refrigera5on.  *  

v   Adop5on  of  “MEPS  in  Residen5al  Building”  

Residen7al   through  inclusion  in  the  “Na5onal  Building  Code”  
Buildings   v   Promote  EE&C  through  awareness  raising,    
educa5on  and  communica5on  campaign  *  

*  -­‐  Started  /  on-­‐going  

24
 EE&C ROAD MAP: (2014 -2030)

RESIDENTIAL BUILDING SECTOR

Short Term Medium Term Long Term
(2014-15) (2016-20) (2021-30)

Residential • Enforceable • Develop role of • Towards energy

Buildings
minimum energy utilities as key efficient housing
standards for implementation precincts
appliances, with partners and
a focus on space information • Inclusion of
cooling and providers residential
refrigeration measures in
• Specific EE Building Code
• Building programs for
envelope low-income
measures – cool households
roofs and
insulation
EE & C ROADMAP: MILESTONES (2014 – 2030)

SECTOR   TARGET  MILESTONES  

v   Compliance  to  designate  Company’s  Energy  
Manager  or  Enercon  Officer    

v   Develop  Energy  Benchmark  for  Buildings  

v   Adop5on  of  Guidelines  on  Energy  Conserving  
Commercial   Design  in  Buildings  as  a  referral  code  of  the  Na5onal  
Building   Building  Code  *  

v   Promote  ESCOs  and  financing  model  in  

Government  retrofit  projects  *  

v   Promote  Green  Building  Ra5ng  System  *  

*  -­‐  Started  /  on-­‐going  

26
 EE&C ROAD MAP: (2014 -2030)

COMMERCIAL BUILDING SECTOR

Short Term Medium Term Long Term
(2014-15) (2016-20) (2021-30)

Commercial • Reformulate • EE measures for • Incentive funds

Buildings
group to oversee inclusion in in place for EE,
EE measures in national building including private
Building Code code financiers

• Retro- • Government • Mandatory

commissioning demonstration disclosure of
program for retrofits to commercial
existing showcase ESCOs building
buildings and financing performance
models
• Benchmarking
and ratings for • Promote green
building building ratings
information
&reporting
EE & C ROADMAP: MILESTONES (2014 – 2030)

SECTOR TARGET MILESTONES

v  Enactment of Enercon Bill into Law *

v  National Energy Consumption Database *

v  Heighten-up EE&C promotion across all

Cross- energy demand sectors *

Sectoral v  Promotion of Energy Efficiency in the Power

Sector (Generation, Transmission, Distribution)

v  Promotion of EE&C projects in the LGUs *

*  -­‐  Started  /  on-­‐going  

28
 EE&C ROAD MAP: (2014 -2030)

CROSS- SECTORAL
Short Term Medium Term Long Term
(2014-15) (2016-20) (2021-30)

• Support • National • Energy

Cross-
Sectoral
passage of strategy for Efficiency and
Enercon Bill efficiency in Conservation
power supply Center
• Establish EE sector mandated and
database, data established
collection • Stronger
regime, M&E coordination
framework with other levels
of government
• Establish (LGUs)
enforcement
regimes • Regular
reporting and
• Strengthen monitoring to
ESCO capacity commence

• Continue
•  Sending market signals to provide incentives for EE
awareness-
•  Strengthening existing policy, advocacy, programs and institutional structures
raising
•  Harnessing private sector /partner finance
•  Enabling innovation and new technologies
 Thank You !!!

An  Energy  Efficiency  Roadmap    

for  the  Philippines  

2014-­‐30

www.doe.gov.ph 30