Photo credit: PE2

The Department of Energy (DOE) and the Philippine Energy Efficiency Alliance (PE2) met on October 14 to discuss initiatives for accelerating energy efficiency and conservation (EEC) programs, agreeing to expand energy service company (ESCO) performance contracts, engage local governments, and review fiscal incentives for long-term projects.

“Neither the Tier 1 nor Tier 2 classifications are helpful to improve the investment returns of long-term EEC projects, because several ESCO contracts will naturally remain in net operating loss through the shorter income tax holiday periods,” said PE2 president Alexander Ablaza, highlighting the need for more supportive policy measures.

The two groups also discussed integrating PE2’s Energy Efficiency Day into DOE’s Philippine Conference for Energy Efficiency and Conservation (PCCEEC) and exploring tradeable certificates for EEC project developers in emerging carbon markets. Allowing ESCOs and third-party developers to register projects shortly after contract commencement could help improve investment returns, Ablaza said, given the short timelines for commercial EEC projects.

The Philippines is emerging as a key ESCO growth market in Southeast Asia, joining Malaysia, Singapore, and Thailand. PE2 emphasized its role in convening the Asia-Pacific ESCO Industry Alliance (APEIA) and co-founding the Global ESCO Network, positioning the country as a regional hub for energy efficiency development.

DOE representatives included Secretary Sharon Garin, Usec. Mario Marasigan, DOE-EUMB Director Patrick Aquino, and Division Chief Ferdinand Binondo. The PE2 delegation was led by Ablaza and included senior officers, trustees, and advisors.

The DOE-PE2 collaboration signals a stronger alignment between policy and market-driven initiatives to scale up energy efficiency adoption in the Philippines.

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