PH Targets Energy Savings, Emissions Cuts with Bold New Plans

The Philippines is charging toward lower energy costs and climate goals, as unveiled at yesterday’s Energy Efficiency Day Conference. Hosted by the Philippine Energy Efficiency Alliance (PE2) at SMX Convention Center, the event showcased big ideas from Budget Secretary Amenah F. Pangandaman, via her Government Procurement Policy Board (GPPB) representative, and PE2 President Alexander Ablaza. Both zeroed in on ramping up energy efficiency to hit COP29’s 2030 target—doubling progress in under five years.

Pangandaman’s speech highlighted sweeping procurement reforms under the New Government Procurement Act (RA 12009), weaving in Life Cycle Cost Analysis (LCA) and Life Cycle Costing (LCCA) to favor long-term gains over cheap bids. 

“Ensuring that every penny spent results in long-term cost efficiency and environmental benefits,” her deputy stressed, pointing to World Bank stats: retrofitting government buildings could slash energy use by 33%, saving 85 gigawatts yearly—enough for 85,000 homes—and cutting emissions by 60,200 tons, like pulling 13,000 cars off roads. Payback hits in just over three years. Solar panels on public buildings would translate to USD 38.5 million saved annually, recouping costs in five to eight years.

The GPPB’s Green Public Procurement push, tied to Resolution No. 19-2023, sets green rules for buys like air conditioners and data centers. Her team urged government, private firms, and ESCOs to join, syncing with the Philippine Energy Plan 2023-2050.

Ablaza took on the summer power crunch, flagging a 3,340-megawatt cooling demand jump from January to May, per 2023 data. His pitch: a 1.5-gigawatt “cooling efficiency virtual power plant” by retrofitting 6 million tons of cooling capacity across commercial, industrial, and government sites. He claims this would save PHP 56 billion and axe 5 million tons of CO2, with no new plants needed. 

“We can together, out of our silos, build the 1.5 gigawatt virtual power plant only for cooling,” he pressed, pushing upgrades in chillers, lights, motors, and battery storage. He added, “More than 50% of energy efficiency opportunities lie outside the grid,” eyeing maritime and urban sectors.

Pangandaman hailed energy efficiency as “our country’s first fuel,” a nod to its role in fiscal and eco wins. Ablaza’s virtual plant could dodge seasonal outages. With PHP 242 billion in private capital up for grabs, he noted, and procurement going green, the Philippines is set to lead. Their rallying cry: team up to turn global goals into local action.

Can green procurement reforms and a 1.5-gigawatt virtual power plant solve our energy woes? What’s your take below on retrofitting buildings vs. cooling upgrades? Share your thoughts!