MANILA, Philippines - The British government said the Philippines has the potential to capture a big chunk of energy efficiency investments worth $790 million.
“As power costs in the country continue to be one of the highest in Asia, a recent study funded by the British government shows the Philippines has the potential to take a huge chunk of energy efficiency investments amounting to at least $790 million,” the British government said in a statement.
The British Embassy launched the study this week in a forum hosted by the Makati City government with the special participation of the La Liga Policy Institute.
The study showed how energy efficiency can open doors to new investment opportunities in six Southeast Asian countries, namely Singapore, Vietnam, Indonesia, Thailand, Malaysia and the Philippines.
According to the study, the Philippines ranks third among six Southeast Asian countries as a possible investment destination for projects that bring down energy consumption while maintaining the same output.
The study also provides baseline information on the amount of business opportunities and identifies sectors that are expected to benefit the most from undertaking energy efficiency projects.
British Ambassador Stephen Lillie underscored the importance of energy efficiency, which is often seen as the neglected element in the low carbon economy.
“We all know there’s a big power deficit in the Philippines. [I’m] glad to see that the lights are all on today, but there’s obviously a big risk that if the power deficit cannot be dealt with, then those lights will be going out at some point. So energy efficiency is a very important part of bridging that deficit. So for the very many reasons, for security, climate and for good financial housekeeping, which is most important to mayors and city administrators, energy efficiency makes good sense,” he said.
The Philippines offers the shortest payback period in the industrial sector, with periods ranging from 1.5 to 3.5 years. In the commercial sector the Philippines ranks second, with payback periods ranging from four to nine years. It ranks just behind Vietnam where the commercial sector is dominated by hotels.
According to the study, the hotel sub-sector offers the shortest payback period among all categories in the commercial sector, given its highly energy intensive nature. About 40 percent of a hotel’s energy consumption goes towards heating water for showers, pools and laundry operations. Investment towards new and cheaper ways of heating water such as solar panels, therefore, lead to significant cost savings.
Lillie said that the British Embassy’s commitment to reduce its carbon emissions is reflected in its building in Taguig which has been cited as the most energy efficient British Embassy in the world, having been awarded a platinum rating by the UK’s green building rating system.
Energy efficiency makes good business sense, as the study found that it can reduce the Philippines’ energy bill by $215 million annually.
Investing in energy efficiency is a cost-effective way to reduce greenhouse gases emission and save on energy bills.
The Philippines is the first to launch the study among the six Southeast Asian countries. The guest speakers in the forum included representatives from the Climate Change Commission, the Makati City Government, La Liga Policy Institute and Arup.