Close to 30 European firms are seriously eyeing to corner a pie in the P12.19 trillion worth of investments that the Philippines is dangling for myriad of energy efficiency (EE) ventures, according to the Department of Energy.
Energy Secretary Alfonso G. Cusi (Photo credit: https://www.doe.gov.ph)
The various investment opportunities that foreign and local investors could take advantage of relating to EE undertakings would include product manufacturing; construction, fabrication and retrofitting of buildings; provision of customized solutions across industry chains; asset management; product importation and supply chain logistics; product labeling and energy audits, among others.
As noted by Energy Secretary Alfonso G. Cusi, “while the government would be leading by example, businesses will play a major role in ensuring the success of the energy efficiency law.”
He said that under his leadership, energy efficiency shall be one of the key strategies that the DOE will be pushing – primarily in attracting investors so capital would flow into the sector.
“For those of us involved in policy and decision-making, we must strike a balance between meeting our current energy needs and building a better and cleaner world for the coming generations,” the energy chief said.
The more than P12.0 trillion scale of investments had been estimated based on the 20-year program of the government, chiefly anchored on promoting energy efficiency ventures and initiatives. That timeframe will be from 2020 until year 2040.
Based on studies carried out by the Philippine Energy Efficiency Alliance (PE2 Alliance), “the national economy will need to mobilize P12.19 trillion in energy efficiency capital to be able to avoid at least 182 million tons of oil equivalent in final energy demand across all energy end-use sectors through 2040.”
At this stage, PE2 Alliance is pushing for the inclusion of P55 billion as a component of the Philippine Economic Stimulus Act (PESA) –that is to account for energy efficiency enhancements to be pursued by national government agencies, government-owned and controlled corporations, state universities and colleges, local government units, water districts as well as micro, small and medium enterprises (MSMEs).
By spending that magnitude of P55 billion capital for the government-underpinned energy efficiency programs, PE2 Alliance indicated that job creation could hover at 41,200 within the short-term stretch of 2021 to 2023.
The group cited that for every P50 million in energy efficiency investments, this could generate average 37.42 jobs – that would be versus 25.88 jobs that could be made for parallel P50 million spent on the Build, Build, Build (BBB) infrastructure development of the government.
And if the maximum capital flow of P12 trillion trillion will be fully realized, total job creation could top 9.0 million energy-efficiency related jobs – and essentially, this will be a valuable complement to employment that could be engendered for Filipinos via the BBB paradigm of the State.
“In comparison to the BBB program through the remaining term of the Duterte administration, energy efficiency projects are estimated to be 45-percent more labor-intensive than BBB infrastructure development activities,” the PE2 Alliance stressed.
The group further noted “energy efficiency has proven speed of delivering economic impacts of job generation and reducing operating expenditures of income generating activities compared to infrastructure projects.”