PE2 places PHL in IEA’s global ESCO map

  • PE2 places PHL in IEA’s global ESCO map

PARIS, France, 7 February 2019 – The Philippine Energy Efficiency Alliance (PE2) submitted energy service company (ESCO) market data to the International Energy Agency (IEA), allowing the global energy agency to upload a Philippines country page under its ESCO and energy efficiency web pages.

PE2 president Alexander Ablaza explained that the Philippine ESCO market, which is believed to be among the top third in market maturity in Southeast Asia, should be prominently captured in global ESCO market databases. He said further, “I am pleased that the IEA has captured our country market data in their study and website, now placing the Philippines among the global ESCO market players.”

Solon cites energy roadmap needed for sustainable development

PE2 reported to the Paris-based agency that for the Philippines to achieve 10,000 Ktoe annual energy savings by 2040, the entire economy will need to reduce final energy demand by an aggregate 182 Mtoe between 2017 and 2040. An estimated USD 726 billion in energy savings can be achieved by 182 Mtoe reductions through 2040.

The Alliance also explained while existing energy efficiency (EE) policies are in place, a more comprehensive law will need to be enacted and pave the way for supplemental policy instruments to remove other persistent market barriers, which include the need to reclassify EE as infrastructure investment, mandate EE obligations for energy consumers, incentivize third-party capital investors and improve government procurement regulations.

PE2 also reported that 98% of ESCOs across emerging economies in Asia do not have adequate access to bank lending to allow them to pursue all viable pipeline project opportunities and are therefore capitally constrained. This is compounded by the lack of off-balance-sheet financing. PE2 also believes that energy savings insurance products could greatly help the uptake of ESCO projects.

The Philippine-registered organization likewise said that ESCOs need to have a greater public sector presence in order to achieve full energy saving potential in the region and that demand-side energy efficiency investments need to remain de-regulated as the ESCO market develops as a mainstream channel of energy efficiency finance.

IEA defines ESCOs as entities that design, install and also sometimes finance, energy efficiency projects through contractual agreements with customers, typically in the form of an energy performance contract (EPC). IEA reports that the focus on ESCO financing models is increasing given the need to rapidly increase innovative finance for energy efficiency.

IEA was established in 1974 to help countries co-ordinate a collective response to major disruptions in the supply of oil, such as the crisis of 1973-1974. While this remains a key aspect of its work, the IEA has evolved and expanded significantly. IEA examines the full spectrum of energy issues including oil, gas and coal supply and demand, renewable energy technologies, electricity markets, energy efficiency, access to energy, demand-side management and much more. Through its work, the IEA advocates policies that will enhance the reliability, affordability and sustainability of energy in its 30 member countries and beyond.

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Philippine Energy Efficiency Alliance Inc. (PE2), is a non-stock, non-profit organization of energy efficiency market stakeholders.

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R.A. 11285 - An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects

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The Philippine Energy Efficiency Alliance, Inc. (PE2) is a non-stock, non-profit organization of energy efficiency market stakeholders.

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  • Philippine Energy Efficiency Alliance, Inc. (PE2)
    19/F Philippine AXA Life Centre 
    Senator Gil Puyat Avenue 
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    Philippines 1200
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