The Philippine Energy Efficiency Alliance Inc. (PE2) has stressed that energy efficiency and conservation are vital for achieving the country’s emissions targets and should serve as the primary defense against the anticipated surge in power demand during the hot, dry months.
“I’ll throw a point that’s close to the heart of the Philippines and now you’re all feeling the sweltering heat of our summer. And this is a problem for our energy sector, our power sector every summer,” said PE2 president Alexander Ablaza at the Energy Efficiency Day 2025 Forum last week.
Ablaza highlighted the critical need to address the increased demand for cooling and refrigeration starting next month.
“What PE2 has been saying since late last year is that we know this from 2023 load demand curves. We need 3,340 megawatts more of generation transmission and distribution capacities for additional cooling and refrigeration from the coolest month of January to the peak months of April and May only because of the rise of the heat index,” he said.
He introduced a new concept: creating a “virtual power plant” of 1.5 gigawatts across the Luzon, Visayas and Mindanao grids by improving the energy efficiency of cooling and refrigeration systems.
“While we still have to figure out how to prepare, finance and implement such an ambitions program, the concept nonetheless demonstrates how a single technology (cooling) can be deployed in massive scale to build a 1,500 MW virtual power plant to permanently shave off the economy’s growing peak demand,” Ablaza said.
“What if we build together a 1.5 gigawatt cooling efficiency virtual power plant? What if we retrofit over 6 million tons of cooling capacity across commercial and industrial designated establishments, across government buildings, across all facilities that need cooling and refrigeration? And that will result in close to P55 billion annual energy savings,” he said.
This initiative would also significantly reduce greenhouse gas emissions.
“So yes, while we are building generating capacities through solar, through other fuels, think of the 1.5 GW that we can build as a virtual power plant only using one technology. And if we use this and work on this together and deploy capital, we can together, out of our silos, build a 1.5 GW virtual power plant only for cooling,” Ablaza added.
He said cooling was just one aspect of the potential for energy efficiency.
“We have players in building management controls, in motors, in compressors, in lighting. There is so much that we could do to shave off that peak and bring it down,” Ablaza said.
“And we’d like to welcome the deployment of storage in the demand side. This is not storage only to the grid, but storage in the demand side of the meter.”
Ablaza stressed the broader scope of energy efficiency beyond the power grid.
“So let’s also talk about energy efficiency in the maritime industry. Let’s talk about electrification of land transport. Let’s talk about sustainable fuels for aviation. Let’s talk about what we can do to remove, let’s say, and make our cities more walkable and demotorize our economy,” he said.
In parallel, the Department of Energy (DOE) promoted energy and water conservation in observance of Earth Hour 2025 on March 22, 2025.
Under the theme “Switch Off and Secure Water for All,” Earth Hour highlights the interconnectedness of energy and water. Energy Secretary Raphael P.M. Lotilla stressed the connection.
“Using energy judiciously is not just about reducing consumption — it is about preserving life itself. Every watt saved is a drop of water protected, reinforcing the delicate balance of our environment. By embracing energy efficiency and conservation, we do more than cutting emissions, we secure the future of our most vital resources for generations to come,” he said.
He cited the significance of Earth Hour as a catalyst for change.
“Through small but consistent actions, individuals, businesses, and communities can make a lasting impact on energy and water conservation, strengthening climate resilience and promoting a more sustainable way of life,” Lotilla said.
The DOE encourages the public to adopt practical energy-saving measures. These include switching off non-essential lights and appliances, using energy-efficient technologies, and adjusting high-energy-consuming activities to avoid peak hours.
He said the government remains committed to sustainable energy development.
“The government remains committed to building a more sustainable and resilient energy system, recognizing its critical role in ensuring the country’s energy security and advancing climate action.
Through progressive policies, strategic programs, and innovative measures, the DOE continues to drive energy efficiency, conservation, and the integration of renewable energy into the country’s power landscape.
These efforts not only support the transition to a low-carbon economy but also foster greater public awareness of the urgent need to address environmental challenges,” Lotilla said.