Manila Electric Co. · PSE:MER

Manila Electric — Philippine Energy Efficiency Alliance Inc (PE2) — Investor Presentation (June 2019)

18 slides from Manila Electric's investor presentation, June 2019

  1. Slide 1: A new era for energy efficiency in the Philippines

    A new era for energy efficiency in the Philippines What you should know about the new Energy Efficiency & Conservation Act Alexander Ablaza June 2019 All rights reserved by A. Ablaza, the Philippine Energy Efficiency Alliance Inc (PE2)

  2. Slide 2: PE2's 4-point approach toward a long-term transformation of the EE market

    PE2’s 4-point approach toward a long-term transformation of the EE market www.pe2.org EE ESCOs Tech/Services Establish EE Enable EE Enforce EE Establish a alliance and Law and Bridge Public-Private build sector Fiscal Policies Collaboration capacities Incentives NPOs / EE Finance Implementors PE2 ha

  3. Slide 3: Philippines rejoins jurisdictions with an Energy Efficiency law and incentive framework

    With the recent passage of RA 11285, the Philippines finally rejoins the many jurisdictions around the world with an Energy Efficiency law and incentive framework in place Dispatching energy efficiency (EE) as the “first fuel” Energy markets need to gradually move toward integral resource planning S

  4. Slide 4: No-brainer multitude of EE co-benefits

    No-brainer multitude of EE co-benefits Source: IEA Source: Pembina Institute All rights reserved by A. Ablaza, the Philippine Energy Efficiency Alliance Inc (PE2)

  5. Slide 5: Source: A. Ablaza, July 2017

    Source: A. Ablaza, July 2017 5 All rights reserved by A. Ablaza, the Philippine Energy Efficiency Alliance Inc (PE2)

  6. Slide 6: Philippines' EE capital requirements, 2017-2040

    Philippines’ EE capital requirements, 2017-2040 Business-as-usual EE capital to be mobilized through: • Self-financed • Debt-financed Business-as- • Lease-financed usual PHP 4 • Other on-balance-sheet* trillion modalities Off-balance sheet* EE capital flows through: • ESCO performance Off-balance sh

  7. Slide 7: A 4-decade journey of the EE&C Act

    A 4-decade journey of the EE&C Act 1990: 1980: HB29056, BP73 EnerCon HB32655 & Act effective HB32781 filed for 5 years in 8th Congress The EE&C policy evolved in the last 4 decades: • EE emerged as a stronger intervention than EC • EE&C is mainstreamed as a “way of life.” • ESCO and third-party inve

  8. Slide 8: Republic Act No. 11285 Energy Efficiency and Conservation Act

    Republic Act No. 11285 Energy Efficiency and Conservation Act Energy Designated Government Certification Incentives Other Features Performance Establishments Demand-side Minimum Energy Type 1: 0.5-4.0 Management (DOE, Certified EE&C million kWh/yr ERC, PEZA) DOE is lead agency Performance and Fiscal

  9. Slide 9: Roles of Government

    • DOE is the lead agency • BOI, CCC, COA, CHED, DBM, DepEd, DOF, DENR, DILG, DPWH, DOST, DTI, DOTr, GCG, GFIs, IC, NEDA, NCC, PSA and TESDA have respective roles • Local Government Units (LGUs) • Inter-Agency EE&C Committee • Government Energy Management Program (GEMP) • Government Energy Efficiency

  10. Slide 10: Certification for Professional Competency and Accreditation for Professional Services

    • Certified Energy Conservation Officers – CECO certification led by TESDA in coordination with DOE • Certified Energy Managers – CEM certification led by CHED in coordination with Certification for Professional DOE Competency and Accreditation • Certification of Energy Service Companies (ESCO) for

  11. Slide 11: Energy Performance Standards and Labeling Requirements

    Energy Performance Standards and Labeling Requirements • Minimum Energy Performance (MEP) for the commercial, industrial, and transport sectors • Energy Labeling for Products and Equipment • Energy Product, Device, and Equipment Examination, Testing, and Verification • Fuel Economy Performance for T

  12. Slide 12: Designated Establishments

    • Type 1: 0.5-4.0 million kWh/yr consumption • Type 2: > 4.0 million kWh/yr consumption • Obligations include: – Energy management system – EE&C programs – Annual EE&C targets and plans – Energy records – Improve average SEC – Annual ECCR submission to DOE – Mandatory energy audit every 3 years Desi

  13. Slide 13: Incentives

    • Fiscal Incentives – EE to be included in BOI’s investment priorities plan for a minimum of 10 years (extendable). E.O. 226 grants income tax holiday and duty-free importation – EE projects are exempt from Article 32(1) of E.O. 226. (EE projects can avail of incentives regardless of ownership struc

  14. Slide 14: Other Features

    • Demand-side Management (DOE, ERC, PEZA) • Waste Management Collection, Recycling and Disposal • DOE-EUMB Strengthening – Alternative Fuels and Energy Technology Division – Energy Efficiency and Conservation Program Management and Technology Promotion Division – Energy Efficiency and Conservation P

  15. Slide 15: Next Steps – Types 1/2 Designated Establishments

    Next Steps – Types 1/2 Designated Establishments • Set up Energy Management System • Appoint a CECO / CEM • Gather historical and baseline energy data, including SEC • Select an energy service company (ESCO) or energy auditor to perform an energy audit • Build up an EE&C program and set SEC reductio

  16. Slide 16: Next Steps – Civil Society

    Next Steps – Civil Society • DOE will need to consult market stakeholders in crafting and finalizing the Implementing Rules and Regulations (IRR). • The intent to mobilize off-balance sheet investments through a suitable package of fiscal incentives should be preserved through the Government’s compr

  17. Slide 17: Download the full text of the EE&C Act from pe2.org

    Download the full text of the EE&C Act from pe2.org Downloadable, searchable text https://www.pe2.org/republic- act-11285-energy-efficiency-and- conservation-act Signed PDF version https://www.pe2.org/sites/defau lt/files/ra-11285-enercon-act.pdf Source: A. Ablaza, 2019

  18. Slide 18: Thank You

    Thank You Alexander Ablaza Co-Chair, Asia-Pacific ESCO Industry Alliance (APEIA) President, Philippine Energy Efficiency Alliance Inc (PE2) 19th floor, Philippine AXA Life Centre Sen. Gil Puyat Avenue corner Tindalo Street 1200 Makati City, Metro Manila, Philippines Tel +63 2 (8)759 6680 loc 231 aab

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