The Philippine Energy Efficiency Alliance Inc. (PE2) is pushing for a “scaled up energy efficiency adoption” as the country faces greater prosperity once it becomes an upper-middle-income country (UMIC) by 2025.
PE2, a non-profit organization representing energy efficiency stakeholders, believes that a scaled-up implementation of energy efficiency measures across all energy end-use sectors will be crucial in offsetting the rising energy demand associated with economic growth.
Its members include Aboitiz Power Corp., Daikin, Engie Services Philippines, Globe, Manila Electric Co., Mitsubishi Corp., Schneider Electric, Siemens, Shell Companies in the Philippines, Daikin Airconditioning Philippines, among others.
PE2 president Alexander Ablaza noted that while increased gross national income per capita presents both opportunities and challenges.
“A continued rise in the Philippines’ GNI [gross national income] per capita should be both a boon and bane as the economy hopes to deepen and broaden the reach of energy efficiency adoption,” he said.
Ablaza said PE2 estimates that the Philippine economy needs to mobilize over P12 trillion in energy efficiency investments to reduce final energy consumption by at least 182 million tons of oil equivalent through 2040. This would not only create virtual generation capacities but also contribute to decarbonizing the energy sector.
“This way, we are able to create several gigawatts of virtual generation capacities while decarbonizing the energy sector,” he said.
“Scaled-up energy efficiency implementation across all energy end-use sectors will certainly offset the incremental energy demand caused by higher standards of living. Most maturing economies, such as the upper middle-income countries, are able to suppress the rise of energy intensities by increasing investments in energy efficiency,” he said.
Ablaza said PE2 believes that the greater economic prosperity brought about by the increase in value added by all resident producers and OFW remittances from abroad bolsters purchases of more energy-efficient appliances, vehicles and machinery among the smaller energy end-users such as small businesses and middle-income households.
“What may work against this beneficial impact is the incremental growth in energy demand associated with a higher standard of living. For example, households may be buying their first refrigerator or air conditioner as their family income improves,” he said.
“Ultimately however, the benefits of economic prosperity will have to outweigh the burden of incremental energy consumption as the country aspires to maintain the energy intensity (or its inverse, energy productivity) level of the entire economy through a scaled-up transformation of the energy efficiency market through 2028 and beyond,” Ablaza said.
The Department of Energy is promoting public-private sector partnership for the development and deployment of energy-efficient technologies and enhancement of energy conservation and management practices through its energy efficiency program.
According to the DOE, energy efficiency can reduce energy demand, lessen the environmental stress due to energy production and use and lead to competitive yet affordable production costs of goods and services.
