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ENERGY UTILIZATION MANAGEMENT BUREAU
The Philippines Energy Efficiency and Conservation Roadmap
2017-2040
Published by
Republic of the Philippines
Department of Energy
Energy Center
Rizal Drive, Bonifacio Global City,
Taguig City, 1632, Metro Manila Philippines www.doe.gov.ph
ENERGY UTILIZATION MANAGEMENT BUREAU
Copyright © 2017
Department of Energy, Philippines
Authors
Mr Mark Lister (Technical Expert)
Ms Maria Balamiento and Mr Alex Arter (Energy advisors)
ECCI (Graphics and layout)
Dr Channa Gunawardena (Team Leader)
Dr Rona Chandran (Editor)
Developed with the support of the European Union
SWITCH-Asia Programme
The EU SWITCH-Asia Programme: http://www.switch-asia.eu
Disclaimer
This report may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holders, provided acknowledgement of the source is made. We would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior, individual permission in writing.
This document was developed with the assistance of the European Union under the SWITCH Policy Support Component Philippines. The contents of this publication are the sole responsibility of the authors and implementing consortium and can in no way be taken to reflect the views of the European Union.
The SWITCH Policy Support Component Philippines is part of the EU SWITCH-Asia Programme. EU SWITCH-Asia is the largest programme in Asia focussing on sustainable consumption and production (SCP) as an approach to development. The programme promotes economic prosperity and poverty reduction in Asia by encouraging a sustainable approach to growth with positive environmental and social impacts.
Contents
LIST OF ACRONYMS FOREWORD ACKNOWLEDGEMENTS EXECUTIVE SUMMARY | 2 3 4 5 |
PLANNING: BACKGROUND
1.1 Introduction 6
1.2 Review of existing energy efficiency and conservation policies, targets and objectives 8
1.3. National and international policy cohesion 10
EMBARK: TOWARDS AN ENERGY EFFICIENCY PHILIPPINES
2.1 Intendment 12
2.2 Overview and milestones 2.3 Monitoring progress | 14 23 |
LIST OF FIGURES
3 Types of policy instruments
4 Indicative energy efficiency targets
5 Overview of Energy Efficiency & Conservation Roadmap for the Philippines, 2017-2040
List of Acronyms AEMAS ASEAN Energy Management Scheme APEC Asia-Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations COP Conference of Parties DOE Department of Energy DOTC Department of Transportation and Communications DOTr Department of Transportation DPWH Department of Public Works and Highways DSM Demand Side Management DTI-BPS Department of Trade Industry-Bureau of Product Standards EE Energy Efficiency EE&C Energy Efficiency & Conservation EUMB Energy Utilization Management Bureau ESCO Energy Service Companies I-O input-output IEA The International Energy Agency LGU Local Government Unit LGUs Local Government Units M&E Monitoring and Evaluation MEPS Minimum Energy Performance Standards NAMAs Nationally Appropriate Mitigation Actions NEECP National Energy Efficiency & Conservation Program NGO Non-Governmental Organization OVI Objectively Verifiable Indicators PEEP Philippine Energy Efficiency Project PIEEP Philippine Industrial Energy Efficiency Project RBM Results Based Management SDG Sustainable Development Goals UNIDO United Nations Industrial Development Organization VAC Ventilation, air-conditioning and cooling |
Foreword We shoulder the shared responsibility of ensuring our planet remains inhabitable and safe. This is a collective obligation that every nation plays an indispensable role. Unfortunately it has been brought to global The Philippines Energy Efficiency Roadmap attention that most economies are culpable of 2017-2040 is a compact yet comprehensive overzealous energy consumption in the pursuit document that we strongly believe will steer us of modernization and development. Therefore, to towards achieving our mission to improve the play its part as a global entity, the Philippines places quality of life of the Filipino by formulating and great priority to reverse and reduce excessive implementing policies and programs to ensure energy consumption by strategic and pragmatic sustainable, stable, secure, sufficient, accessible approaches towards human development and and reasonably-priced energy. It calls upon us to green growth to ultimately ensure Philippines is view and plan development and the accompanying a nation that is in harmony with the environment processes through more informed and and nature. responsible perspectives. The commencement of this document is to corroborate and strengthen the various ongoing initiatives in the Philippines to ensure that collectively as a nation we are able to achieve our goals towards sustainable growth for the well-being of the present and future generations to come. |
Acknowledgements We are appreciative to be part of the SWITCH-Asia Program which is the largest EU Program on Sustainable Consumption and Production (SCP) in Asia. The Philippines has always been open and We acknowledge the multi-faceted challenges receptive towards collaborative projects with the faced in completing the Philippines Energy best interest of the Filipino people, the nation Efficiency Road Map 2017-2040 and the endless and global agendas. The EU SWITCH-Asia Policy dedication of many individuals. We would Support Component has provided the platform for like to extend deepest gratitude on behalf of officials, experts, academics and consultants the the Department of Energy, Philippines. Our opportunity to deliberate and discuss pertinent appreciation goes out to the committed technical issues and the way forward to ensure sustainable team; Dr. Channa Gunawardena the team leader, consumption and production is incorporated into Mr. Mark Lister who served as a consultant, Mr. national development plans. The whole program Alex Arter and Ms. Maria Balamiento the energy has been a dynamic process than has managed advisors, the design team of ECCI Corporation to bring together various stakeholders to share, and Dr. Rona Chandran the editor. This initiative discuss and plan towards a common goal. This would not have been possible without the exercise will also help to avoid unnecessary financial support by the European Union under duplication and to reduce less effective silo the SWITCH-Asia Policy Support Component initiatives which in turn will encourage prudent Philippines. financial management and increase efficiency. Maraming Salamat Po |
| Executive Summary The Philippines has dedicated programmatic activities to advance energy efficiency since 2004. Over the last decade there have been numerous energy efficiency policy initiatives by the Government; while these initiatives have been consistent and complimentary, room to narrow gaps and improve implementation and monitoring exists. The Philippines Energy Efficiency and Conservation Roadmap 2017 – 2040 provides a framework for building an energy-efficient nation and in making energy efficiency and conservation a way of life for all Filipinos. Energy efficiency will advance the country’s economic development and help ensure energy security, optimal energy pricing and sustainable energy systems. The development of this Roadmap commenced with a review of the energy demand context of the Philippines and its current energy efficiency programs. This review considered the effectiveness of current programs, identified gaps and unrealized opportunities based on international best practice. A first version of the Roadmap was completed in 2014. However, it has been deemed essential to revise the roadmap in 2016 prior to publishing. This Roadmap is a consolidated national level document of policy instruments to enhance energy efficiency in the Philippines for the period 2017 to 2040. It integrates identified opportunities with existing energy efficiency policy instruments and strategies. The document also incorporates the priority goals of the current administration (2017-2022). | The first part of this document sets the background to the integration process and the development of the road map. Policy targets, opportunity, priority areas and further considerations are discussed. The second part of the document embarks on the road map with introductory statements of objectives and targets. This is followed by short, medium and long term strategies to achieve the stated objectives. The successful attainment of the goals and targets set is highly dependent on the corresponding and complementing sector-based action plans, which will detail the approach of implementing the recommendations of the roadmap, including allocating roles and responsibilities and financial resources. |
PLANNING: BACKGROUND
2 EMBARK: TOWARDS AN ENERGY EFFICIENCY PHILIPPINES
1.3 National and international policy cohesion
National policy cohesion Sustainable Development Goals
(SDGs) The Roadmap is consistent
The Roadmap has aimed to align the Government’s with the SDGs especially with Goal cross-sectoral and long-term planning and 7 which sets to ensure universal strategy documents that have relevance to energy access to affordable, reliable and modern energy efficiency, including numerous transport strategies, services and expand infrastructure and to upgrade industry strategies, the Philippine Development technology for supplying modern and sustainable Plan and National Climate Change Action Plan, energy services for all in developing countries, while still acknowledging the specific emphasis of in accordance with their respective programs of each of these plans. support by 2030.
The Asia-Pacific Economic Cooperation (APEC) Peer Conference of Parties (COP) climate Review of Energy Efficiency policies completed in change negotiations: The Roadmap 2012 set out fifty-four recommendations for future supports the Philippines position at energy efficiency action for the Philippines, which the COP21 and COP22 climate change have been considered in the development of a negotiations.
revised Roadmap.
Secretary Emmanuel M. de Guzman, Vice chair of the Climate Change Commission and head of the International policy Philippine delegation to COP 21 (Paris, 2015) stated: cohesion ”Our Paris Agreement may not be as perfect as we wished it to be, but it is essentially an acceptable
ASEAN Plan of Action for Energy Cooperation accord. We can build on it and make it better over 2016-2025 (APAEC) This plan, endorsed by all time. We must now focus on its implementation ASEAN member states, aims to reduce energy and on the compliance procedures and will intensity in ASEAN by 20% until 2020. engage in the process.”
The International Energy Agency (IEA) in October Assistant Secretary Evelyn Cruzada, Office of 2013 released a series of recommendations on the Philippine Cabinet Secretary, Republic of the how to unlock energy efficiency in buildings, Philippines declared the Philippines position for appliances, transport and industry, as well as COP 22 (Marrakesh, 2016): “In essence adaptation, end-use applications such as lighting in Southeast mitigation, including economic growth do not have Asia. It is mostly concerned with energy supply to be separate activities or choices. These objectives scenarios for the region. However it strongly can all be achieved given the right approach.” acknowledges that energy savings can be a very
important and cost-effective source of additional The Roadmap supports the Philippines energy “supply” for the region and also deliver commitments at COP21 and COP22 by providing a substantial economic gains. The Roadmap is consistent and holistic approach for implementing consistent with this. energy efficiency measures in the short, medium and long term. These measures support economic development and competitiveness by promoting energy efficiency and security across key economic sectors of the country.
PLANNING: BACKGROUND 2 EMBARK: TOWARDS AN ENERGY EFFICIENCY PHILIPPINES
1.4 Policy instruments
How targets and milestones will be achieved
Policy instruments are tools that the government can use to effect desired changes. These changes should target the main players of the economy, namely the consumers and the producers (business). Key policy instruments which can support the implementation of Energy Efficiency (EE) strategies are depicted in figure 3 below.
Figure 3 Types of policy instruments
Regulatory instruments
Laws, regulations, administrative orders, circulars, guidelines
Regulation is the strongest intervention which a government can choose to influence the operating conditions of a market. Regulatory instruments are the most commonly used policy instruments in modern economies. They are mandatory by nature and can influence positively the behavior of consumers and producers.
Economic instruments
Loans, taxes, incentives, subsidies,
grants, awards, commercial funding
A range of economic instruments need to be harnessed to increase energy efficiency implementation. Alignment of economic signals with desired outcomes, including elimination of subsidies and cross-subsidies, or the creation of pricing incentives, sends clear signals to provide incentives for energy efficiency. It is critical to assess if the desired behavior continues once the economic instrument is removed. Economic instruments deploy their maximum effectiveness often in tandem with regulatory instruments.
Hybrid instruments
Pilot projects, programs
Hybrid instruments focus on activities such as projects or pilots with a fixed time period. They sometimes combine functions of two or more instruments typically education, information and partnership.
Information instruments
Information resources, communication campaigns, dissemination platforms, public information activities
Public awareness requires effective communication campaigns. Communication needs collaboration between the Government as the main source of information in cooperation with non-government stakeholders and the private sector. To promote energy efficiency effectively content must be customized for specific target audiences and disseminated via effective channels.
Partnership instruments
Networks, partnerships, platforms, stakeholder forum
Partnership instruments deal with creating working arrangements between a variety of stakeholders including within the Government and between the Government and other stakeholders such as industry, Non-Governmental Organizations (NGOs), academia.
Education instruments
Curricula, guidelines, teacher training, school programs, industry training,
capacity building
Education is a critical instrument to accompany most energy efficiency initiatives. It can take numerous forms such as integration in secondary and tertiary education curricula, training of trainers programs and capacity building for government, industry and Energy Service Companies (ESCOs).
| Short Term (2017-2020) Closer support to manage identified risks in vehicle conversion and e-vehicle/e-trike programs – initiatives to target key energy use subsectors in transport such as tricycle and taxi fleets. Fuel Efficiency Ratings developed for light-duty vehicles, vans/ jeepneys, tricycles and heavy vehicles (trucks) – a long-stated objective, this could be a very effective mechanism for increasing the efficiency of vehicles in a given category, though its impact through new vehicles could take time. Re-formulated coordination mechanisms with other agencies – reinstating talks and coordination bodies with Department of Trade Industry-Bureau of Product Standards (DTI-BPS), Department of Transportation (DOTr) and other agencies regarding road transport fuel efficiency will be important to implement and align with overall energy efficiency goals. |
Transport Sector |
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Manufacturing Sector | Minimum Energy Performance for industrial devices – Minimum Energy Performance (MEP) will be introduced for electric motors and other industrial devices like pumps. Motors are the largest end-user of electricity in the world, accounting for nearly half of global electrical energy use (IEA, 2011). The applications for these motors cover almost every stage of manufacturing and processing, and also extend to commercial buildings. MEP for motors shall incrementally be introduced in a time phased manner to keep pace with best practices internationally (e.g. IE2 and IE3). Reporting by designated energy consumers – energy consumers utilizing energy above designated thresholds shall be mandated to provide annual reports on their energy consumption. These reports shall gradually be extended to include plans for energy efficiency measures. Develop sectoral focus programs to facilitate EE in energy intensive industries (cement and construction, sugar) – specific programs for energy intensive industries need to be developed. Sugar processing and cement/construction are suggested as first priorities. This could include specific expertise and advice for industry on motors and drives, or on efficient cement production through dry kiln processes, and facilitation of industry-specific retrofit project development. |
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Cross-Sectoral | Build stronger coordination with LGUs and private sector - given decentralized decision making processes in the country, it is important that stronger coordination is achieved with other levels of government and the private sector. This is especially true of the links with local government units/city governments, which have a pivotal stake in implementation of key initiatives like the e-trike project and the enforcement of EE measures in the building code. Relevant partnerships should be established with private sector via business organizations like Chambers of Commerce and industry associations. Establish EE database, data collection regime and monitoring and evaluation framework – this is a high priority task that must materialize regardless of the status of the Enercon Bill and its passage. While the Bill sets up a data collection mechanism for large energy users, a more comprehensive data collection framework is required such as how the data will be assembled and used to monitor progress towards EE targets. Conduct information and education campaigns – information campaigns will develop specific messages for specific target groups (e.g. government, local government, private sector and consumers). Messages shall be disseminated via the most effective channels including ongoing schemes such as the power patrol, social media, mass media and localized events. Education campaigns shall focus on teacher training, integration of EE in curricular, school programs and stronger linkage with the environmental education program of the DENR. |
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| Enhanced reporting and management by designated energy consumers – the regime of mandating energy consumers utilizing energy above designated thresholds to pro-vide reports and measures will be enhanced in line with best practices. Measures can include energy audits, integration of renewable energy generation by these consumers and awareness activities for the surrounding community. Review of energy pricing models – it is widely acknowledged that high electricity tariffs in the Philippines curtail the use of energy to some extent. However, through further pricing and tariff structure reform it may also be possible to promote efficiency for large users more directly. |
Commercial Buildings Sector | EE measures included in national building code – the inclusion of efficiency measures in the national building code can create impact on a large scale, based on the existing Guidelines for Energy Conserving Designs of Buildings. There are many international reference points for the successful inclusion of energy efficiency measures into building codes. This will need a strong enforcement regime in order to be effective. Promote benchmarking and building ratings – A number of initiatives are in place which have developed ratings for commercial buildings. Such ratings and minimum benchmarking measures need to be scaled up with a focus on mandating their use in the transactions of commercial buildings (sale and lease). |
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Residential Buildings Sector | Develop role of utilities as key implementation partners and information providers – electric utilities and fuel providers are uniquely placed at the customer interface and can play an important role in information provision and energy efficiency awareness. Experience in other countries suggests that provision of energy usage information and targeted advice is a cost effective way to achieve a reduction in energy use. Specific EE programs for low-income households – consideration can be given to the types of measures that may be most beneficial and practical to low income households, in an effort to ensure relevance to the majority of the residential sector, and as a way of integrating the EE and poverty reduction objectives of government. |
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Commercial Buildings Sector | Incentive funds in place for EE, including private financiers – in the long term, following capacity building for the ESCO sector and an increased ability for the commercial finance sector to take EE risk, government can facilitate the creation of a private sector fund or revolving fund that creates a funding pathway for building retrofits. Mandatory disclosure of building performance – efforts to increase existing building ratings penetration will enable a stronger regime of information requirements for commercial buildings, specifically a requirement to disclose building performance on the sale or lease of a building. This information sends an important signal to the market and experience has shown that it can drive uptake of efficient building practices and can create financial returns for EE buildings through differential rental rates. |
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Residential Buildings Sector | Towards EE housing precincts – in the long term, there is scope to consider development of EE precincts at the barangay level or local energy supply cooperative level. This may allow for more sophisticated measures to support EE, such as group purchasing of EE equipment, on-bill financing models, and decentralized or on-site energy generation. Inclusion of residential measures in building code – following on from the inclusion of EE measures for commercial buildings in the national building code, measures for residential housing can also be introduced. This is more difficult based on less stringent controls and enforcement for standard of residential housing in the country. |
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Cross-Sectoral | Enhanced institutional structure – The cross nature and scale of activities can justify the strengthening of the DOE to act as a focal point with a clear legislative mandate to lead and administer the EE activities of Government across all agencies. It is also noted that the Enercon Bill contains some provisions in this regard. |
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- Integrate monitoring and learning across policy instruments, programs and amongst implementing stakeholders
- Contribute to improved quality and management EE
The establishment of an M&E system would involve the following activities: - The development of a M&E strategy including a M&E Framework and
criteria - Development of specific tools such as indicator systems, results frameworks and theory of change models to measure progress towards targets
- Establish data gathering strategies as described in the previous section
- Conduct of baseline surveys, where baseline information is missing
- Gathering of M&E data to assess progress using tools established
- Establish systematic reporting procedures
- Outreach of results within DOE, other Government decision makers and broader stakeholders
- Learning processes to identify factors which determine performance and introduce improvements
- Follow up and corrective action as required which inform future work plans, programs and projects
Reporting The Roadmap proposes consolidated evaluation of progress to be reported publicly every 2 years, with the first report compiled by the end |
Philippine Government strategies and priorities for energy efficiency
SHORT TERM | | MEDIUM TERM | | LONG TERM | ENERGY SAVINGS BY 2040 OVER 2OO5 BASELINE |
* Original version of the representation on page 9
References
APEC Energy Working Group (2012), Peer Review on Energy Efficiency in the Philippines,
First Draft Report, May 2012
APEC (2007), Sydney APEC Leaders’ Declaration on Climate Change, Energy Security and Clean
Development, September 2007, accessed at http://www.apec.org/Meeting-Papers/Leaders-
Declarations/2007/2007_aelm/aelm_climatechange.aspx
IEA (2011), Energy-Efficiency Policy Opportunities for Electric Motor-Driven Systems
IEA (2013), Southeast Asia Energy Outlook, October 2013
IFAD (2013), ‘A Guide for Project M&E’, accessed at http://www.ifad.org/evaluation/guide/