Government needs $27-million funding for energy efficiency program

MANILA, Philippines - The Philippine Industrial Energy Efficiency Project (PIEEP) would need more than $27 million in government, international agency funding and bank financing, a top energy official said.

Evelyn Reyes, director of the Department of Energy’s Energy Utilization and Management Bureau, said the five-year energy efficiency program targets cutting greenhouse gas (GHG) emissions and save fuel and energy for local industries.

The Global Environmental Facility has allotted $3.17 million for the PIEEP, which requires co-financing with the private sector and the government.

The DOE, for its part, will provide $4 million in kind, Reyes said. This assistance will include office space and support staff as specific energy efficiency projects are identified.

The bulk of the financing, or $20 million, will come from local banks like Land Bank of the Philippines and Bank of the Philippine Islands, Reyes added.

“Improving energy efficiency in industry is one of the most cost-effective measures to help supply-constrained developing and emerging countries meet their increasing energy demand and loosen the link between economic growth and environmental degradation, such as climate change,” said project proponent United Nations for Industrial Development Organization (UNIDO).

“This project will enhance energy efficiency and reduce GHG emissions by introduction of energy management standards, system optimization and expansion of financing opportunities for energy efficiency investments,” UNIDO said.

The PIEEP targets 6.07 million gigajoules in steam savings and 2.06 million megawatt-hours in energy savings.

The program also seeks to reduce 1.46 million metric tons of carbon emissions through electricity and fuel savings.

Reyes said the project will specifically assist firms in the food and beverage, chemicals, pulp and paper, and metals and steel.

Under the Energy Management System component, 40 national energy management experts will be trained while project awareness will reach 300 factories.

PIEEP will also provide training materials and software tools.

The project proponents also want to train 40 factory personnel in systems optimization for pumps, compressed air, fans, motors, steam boilers and 400 workers in systems optimization.

PIEEP aims to develop the financing capacity by providing materials and training to finance managers that will allow them to develop and evaluate feasibly energy efficiency projects.

The main goal of the global UNIDO program is to encourage and implement sustained energy management and efficiency practices in industry of developing countries.

This will reduce the environmental pressure of economic growth while increasing productivity, helping to generate economic growth, creates jobs and alleviates poverty.