ENERGY EFFICIENCY AND CONSERVATION

Milestones
ROADMAP: and

Challenges

An Energy Eciency Roadmap

for the Philippines

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

A. DOEs Current Energy Eciency and Conserva7on Ini7a7ves

B. The Philippines Energy Eciency 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
High Electricity Cost
Inecient Process Equipment and devices
Inecient Process Opera5on
Lack of Electricity supply in the Grid / Localized Power Crisis
High xed opera5ng cost due to increase in Electricity Consump5on
Absence of an Energy Management System
Compliance to Clean Air Act
Compliance to Companys Corporate Social Responsibility (CSR) to protect the
environment

RESIDENTIAL / HOUSEHOLD SECTOR

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

TRANSPORT SECTOR
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 eciency 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 ecient 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 signicant 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. Teosto
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
Eciency 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
vPhilippine Industrial Energy Project Industrial
(PIEEP)
vPhilippine Energy Eciency Project Government Building Public Ligh7ng
(PEEP) 14
An Energy Eciency 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-
ecient na5on, and in making energy eciency and
conserva5on a way of life for all Filipinos. Energy eciency will
advance the countrys 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:

40% reduction in energy intensity compared to 2010

baseline

Decreased energy consumption of 1.6% per year

against baseline forecasts

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 Eciency 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 Ecient Vehicle Technologies,
Awareness raising (drivers educa5on) to all public
and private vehicle drivers *
v Extend Energy Eciency 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 ecient technologies
(pioneering energy eciency 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 Companys Energy
Manager or Enercon Ocer

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 nancing model in

Government retrot 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 Eciency Roadmap

for the Philippines

2014-30

www.doe.gov.ph 30