PE2 announces new BOI guidelines for EE in well-attended GMM
TAGUIG CITY, 18 October 2022 – The Philippine Energy Efficiency Alliance (PE2) announced the recent approval by the Board of Investments of the amended specific guidelines for energy efficiency projects to be registered for fiscal incentives under Republic Act No. 11285, or the Energy Efficiency and Conservation (EE&C) Act, and Republic Act No. 11534, or the Corporate Recovery and Tax Incentives (CREATE) Act. This was reported by PE2 president Alexander Ablaza in his semi-annual report to the membership during the well-attended virtual General Membership Meeting (GMM) held earlier today.
At least eighty-nine percent (89%) of PE2 voting member companies and 5 associate member companies attended the GMM to receive and discuss the President’s Report.
PE2 president Alexander Ablaza, who chaired the GMM, kicked off his report with a review of policy issuances under RA 11285, which were approved so far in 2022. He listed the six Department Circulars issued by the Department of Energy (DOE) before it closed the previous administration on 30 June 2022. He also mentioned the latest resolution of the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC), which instituted the Government Energy Management Program (GEMP) Guidelines under IAEECC Resolution No. 5, series of 2022.
Ablaza also announced that DOE has included 10 accredited energy service companies (ESCO), 19 registered ESCOs and 7 certified ESCOs under its ESCO registration and certification framework. These include PE2 Regular A members:
- Accredited ESCOs: Engie Services (Philippines), Meralco Energy Inc. (MSERV), Concepcion Carrier Air Conditioning Co. (CCAC)
- Registered ESCOs: Alpha Centauri Electrical Services, First Gen Energy Solutions, Stratcon Power Services Philippines Inc., Signify Philippines Inc., TS-i Energy Solutions Corp., Thermal Solutions Inc., and, Pi Energy Inc.
- Certified ESCOs: Filairco Technical Services Co. Inc. (Trane Philippines), Total Renewable Energy Efficiency Solutions Corp., EconoServ Solutions International Inc., Upgrade Energy Philippines Inc., Westco Electrical & Equipment Corp., and, OSP ESCO International Inc.
The PE2 president also announced two major policy issuances related to fiscal incentives for energy efficiency projects under the CREATE Act. On 24 May 2022, Malacañang issued Memorandum Order No. 61, approving the 2022 Strategic Investment Priority Plan (SIPP), which clearly classifies EE&C projects as a Tier II domestic market activity entitled to 5-7 years of income tax holiday (depending on location) and another 5 years of enhanced deductions. Also, the Board of Investments (BOI) approved on 8 August 2022 BOI Memorandum Circular No. 2022-008, which amends the specific guidelines for the registration of EE&C projects under the EE&C Act and the CREATE Act.
Another policy milestone was the inclusion of EE&C as eligible project type under the amended Implementing Rules and Regulations (IRR) of the Build-Own-Operate (BOT) Law. This was approved by the Cabinet-level BOT IRR Committee in a meeting held at the Department of Finance on 15 September 2022. On 16 March 2022, the PE2 Policy Committee submitted to the BOT Law IRR Committee its recommendation for the explicit inclusion of EE&C as an eligible project type, as provided for under the EE&C Act.
Ablaza also reported on the PE2 media statements released in reaction to the President’s State of the Nation Address on 25 July 2022, and to DOE Sec. Lotilla’s press conference on 9 August 2022.
The President’s Report also briefed the members on PE2’s active participation in the First Biennial Meeting of the Global ESCO Network in Sønderborg, Denmark, through the Alliance’s active leadership of the Asia-Pacific ESCO Industry Alliance. PE2 likewise supported embassy outreach activities of Denmark, Germany, Czech Republic and Italy. PE2 also pushed EE&C in the clean energy agenda of the World Clean Energy Conference Philippine Edition 2022 and Building Green 2022, and attended the industry consultations of the Department of Trade and Industry for sectors under the Technology, Media and Telecommunications (TMT) cluster.
Ablaza led the general membership in welcoming the new associate members to the Alliance, namely, Globe Telecom Inc., German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI) and the Philippine Association of Coastal and Inland Water Ferries, Inc. (PACIWFI).
Participating members actively participated in the open forum. The PE2 announcement of DOE’s non-extension of the 31 December 2022 deadline for designated establishments to complete and submit Level I energy audits under RA 11285, and how this relates with the mandatory energy management system (e.g., ISO 50001) triggered an interesting exchange of questions and clarifications.
The PE2 Board of Trustees held a special meeting immediately before the GMM was convened. The GMM was followed by PE2 Networking Night, a cocktail reception intended to forge closer collaboration across sectors for the shared objective of growing the energy efficiency industry.
Villaraza & Angangco Law, an active member of PE2, hosted the virtual GMM and board meeting.