energy efficiency and conservation - switch … · 4) energy efficiency and conservation bill (16th...

Milestones and

Challenges

ENERGY EFFICIENCY AND CONSERVATION

ROADMAP:

Art P. Habitan Energy Efficiency and Conserva7on Division Department of Energy September 30, 2014 BALI, INDONESIA

An Energy Efficiency Roadmap

for the Philippines

2014-‐30

A.   DOE’s Current Energy Efficiency and Conserva7on Ini7a7ves

B.   The Philippines Energy Efficiency and Conserva7on Roadmap i.  The Development and Objec5ves of the 2014-‐2030 EE&C Roadmap

ii.  Milestones and Challenges of 2014-‐2030 EE&C Roadmap

CONTENTS

2012 Final Energy Demand, by Sector

Sector kTOE % share Industry 5,808.14 24.9 Transport 8,359.01 35.9 Residen5al 5,983.88 25.7 Commercial 2,832.12 12.2

Agri., Fishery & Forestry 318.77 1.4 Total Demand 23,301.92 100.00

Year Energy Saving (KTOE)

Deferred Capacity

(MW)

CO2 Avoidance

(Million Tons)

2012 4,350 1,341 8.2 2013 4,785 1,475 9.1 2014 5,264 1,622 10.0 2015 5,790 1,784 11.0 2016 6,369 1,963 12.1

Short Term Target (2013 – 2016)

ANNUAL AVE. ENERGY SAVING = 5,597 KTOE/Yr.

ANNUAL AVE. DEFERRED MW CAPACITY = 1,711 MW/Yr.

ANNUAL AVE. EMISSION REDUCTION EQUIVALENT = 10.6 KTCO2 / Yr.

5

ü  High Electricity Cost ü  Inefficient Ligh5ng System, Appliances and Equipment ü  Low Family Income ü  Lack of Electricity supply (Power Capacity) in the Grid / Localized Power Crisis ü  Increased in electricity consump5on

RESIDENTIAL / HOUSEHOLD SECTOR

INDUSTRIAL / MANUFACTURING SECTOR ü  High Electricity Cost ü  Inefficient Process Equipment and devices ü  Inefficient Process Opera5on ü  Lack of Electricity supply in the Grid / Localized Power Crisis ü  High fixed opera5ng cost due to increase in Electricity Consump5on ü  Absence of an Energy Management System ü  Compliance to Clean Air Act ü  Compliance to Company’s Corporate Social Responsibility (CSR) to protect the environment

BUILDING SECTOR

ü  High Electricity Cost ü  Inefficient Ligh5ng System, A/C System, and other equipment and devices ü  Inefficient opera5on of electrical Loads ü  Lack of Electricity supply in the Grid / Localized Power Crisis ü  High fixed opera5ng cost due to increase in Electricity Consump5on ü  Compliance to Clean Air Act ü  Compliance to Company’s Corporate Social Responsibility (CSR) (Environmental Protec5on)

TRANSPORT SECTOR

ü  High Cost of petroleum products

Independent Power Producers (IPPs) (1994)

MAJOR ENERGY ISSUES and POLICY INITIATIVES

• Energy Efficiency and Conservation Bill (2014) •  Department Order: DSM Program (2014)

Energy Conservation Law (1980-1990)

DSM Order (1995)

•  Electric Power Crisis Act (1993)

World Oil Crisis / Oil Embargo (1973-1978)

• High World Oil Market Price (2003) •  High cost of Electricity (...2000)

Lack of Power Supply Capacity (1991)

•  Electric Industry Reform Act (2001) •  Government Energy Management Program (2004)

Lack of Power Supply Capacity (2015)

Status of the Philippine Energy Efficiency and Conservation

Policies

1)  Government Energy Management Program (GEMP): AOs 110, 110-A, 126)

2)  DOE Circular 93-03-05: Energy Consumption Monitoring

3)  DOE Circular 2008-09-0004: ESCO Accreditation System

4)  Energy Efficiency and Conservation Bill (16th Congress)

5)  The Philippine Energy Efficiency Roadmap

I.  Status of Energy Efficiency Policies in the Philippines:

The above energy efficiency policies were currently being implemented by the Department of Energy and these were discussed in the next following slides.

Government Energy Management Program (GEMP)

Savings from Sept 2005 to March 2013:

Php 2 Billion •  PhP 1.7 Billion on electricity •  PhP 274 Million on Fuel

ADMINISTRATIVE ORDER NO. 110 - DIRECTING THE INSTITUTIONALIZATION OF A GOVERNMENT ENERGY MANAGEMENT PROGRAM (GEMP) The Government shall aim to reduce its monthly consumption of electricity (in kilowatt-hours) and petroleum products (in liters) by at least ten percent (10%)

Administra7ve Order (A.O.)

A.O. 110-‐A (s.2006)

Amending A.O. 110 s. 2004 – Direc5ng the ins5tu5onaliza5on of a government energy management program.

A.O. 183 (s.2007)

Direc5ng the use of energy efficient ligh5ng/ligh5ng system (EELs) in government facili5es.

A.O. 126 Strengthening measures to address the extra ordinary increase in world oil prices, direc5ng the enhanced implementa5on of the governments energy conserva5on program .

Annual recogni7on given to companies with significant energy savings achieved thru the implementa7on of EE&C technologies & measures

DON EMILIO ABELLO ENERGY EFFICIENCY AWARD

Recognition Award

FY 2013 Generated Saving: 56 million liters of oil equivalent (LOE) and monetary savings of Php 2.4 billion and more than 90 million kilograms of avoided carbon dioxide from 58 commercial and industrial establishments

DEPARTMENT CIRCULAR – 93-03-05 To all Industrial, Commercial and Transport Sectors: Establishments consuming 1 million LOE annually are required to submit Quarterly Energy Consumption Report (QECR) to DOE. In addition, establishments consuming 2 million LOE, apart from the QECR are required to submit an Annual Energy Conservation Program Report (AECPR).

Energy Consumption Monitoring

12

ESCO Accreditation System

Proposed Energy Efficiency and Conservation Bill

(16th Congress)

Short Title -‐ This Act shall be known as the "Energy

Efficiency and ConservaEon Act of 2014"

AN ACT INSTITUTIONALIZING ENERGY EFFICIENCY AND CONSERVATION, ENHANCING THE EFFICIENT USE OF ENERGY, AND GRANTING INCENTIVES TO ENERGY

EFFICIENCY AND CONSERVATION PROJECTS, AND FOR OTHER PURPOSES

SBN 1085 by Sen. Teofisto “TG” Guigona SBN 167 by Sen. Sergio R. Osmena HBN 4393 by Cong. Reynaldo V. Umali

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EE&C Programs / Ac7vi7es / Project Target Energy Demand Sector(s)

I.   Informa7on, Educa7on and Communica7on Campaign Program

▪Household ▪ Commercial Building ▪ Government Building ▪ Industrial▪ Transport ▪

II.   Standard and labeling Program ▪Household ▪ Transport ▪ III.   Fuel Economy Run ▪ Transport ▪

IV.  Government Energy Management Program (GEMP)

▪ Government Building ▪

V.   Energy Management / Energy Audit Commercial Building ▪ Government Building ▪ Industrial▪

VI.   Recogni7on Award Program Commercial Building ▪ Government Building ▪ Industrial▪ Transport ▪

v  ESCO Accredita7on ▪ Commercial Building ▪ Industrial

v Philippine Industrial Energy Project (PIEEP)

▪ Industrial▪

v Philippine Energy Efficiency Project (PEEP)

▪ Government Building ▪ Public Ligh7ng ▪

National Energy Efficiency and Conservation Program (NEECP)

An Energy Efficiency Roadmap for the Philippines 2014-‐30

Statements of Overall Vision, Objec7ves and Targets

This Roadmap guides the Philippines in building an energy-‐efficient na5on, and in making energy efficiency and conserva5on a way of life for all Filipinos. Energy efficiency will advance the country’s economic development and help ensure energy security, op5mal energy pricing and sustainable energy systems.

B. The Philippines Energy Efficiency and Conservation Roadmap

Targets a

.

Targets are set in the context of strong economic growth and energy demand growth expected during the period. Demand is forecast to grow by 78% between 2014 and 2030, an average annual growth rate of 3.5%; transport and industry are the dominant end use sectors.

MILESTONE TARGET

A.   Introductory statements of Overall Vision, Clear Objec7ves

and Measurable Targets;

B.   Short, Medium and Long term poten7al ac7ons, both Cross-‐

cueng and by Sector;

C.   Plans for Measuring and Monitoring Progress.

The Roadmap include a number of key components:

Energy Efficiency Roadmap for the Philippines, 2014-2030

Strengthening existing policy, advocacy, programs and institutional structures Harnessing private sector /partner finance

Enabling innovation and new technologies

2030 Objective

s: 40%

reduction in energy intensity compared to 2010 baseline Decreased energy consumpt

ion of 1.6% per

year against baseline forecasts Savings

of approx. 10,665

KTOE p.a. (one-third of current demand) by 2030

Transport

•  Vehicle Fuel Efficiency Standards developed all vehicles • Risk management on vehicle conversion, e-vehicle programs (?) • Re-formulate coordination mechanisms

Short Term (2014-15)

• Financial incentives for EE through vehicle taxes • Promotion of key vehicle technologies • Driver education and fleet management programs ^(2014>)

• EE programs beyond road transport (passenger and cargo ships, aviation fuels) • Reintegration of urban planning and transport energy use

Industry • Link existing training projects with ESCO capacity building • Develop sectoral focus programs to facilitate EE in energy intensive industries (e.g. cement and construction, sugar)

• Develop standards for motors • Facilitate example models including ESCOs, finance • Implement demand response programs • Review of energy pricing

• Review inward investment rules for EE to remove distortions

Commercial Buildings

• Reformulate group to oversee EE measures in Building Code • Retro-commissioning program for existing buildings • Benchmarking and ratings for building information &reporting

• EE measures for inclusion in national building code • Government demonstration retrofits to showcase ESCOs and financing models • Promote green building ratings

• Incentive funds in place for EE, including private financiers • Mandatory disclosure of commercial building performance

Residential Buildings

• Enforceable minimum energy standards for appliances, with a focus on space cooling and refrigeration • Building envelope measures – cool roofs and insulation

• Develop role of utilities as key implementation partners and information providers • Specific EE programs for low-income households

• Towards energy efficient housing precincts • Inclusion of residential measures in Building Code

Cross- Sectoral

• Support passage of Enercon Bill • Establish EE database, data collection regime, M&E framework • Establish enforcement regimes • Strengthen ESCO capacity • Continue awareness-raising

• National strategy for efficiency in power supply sector • Stronger coordination with other levels of government (LGUs) • Regular reporting and monitoring to commence

• Energy Efficiency and Conservation Center mandated and established

Medium Term (2016-20)

Long Term (2021-30)

Sending market signals to provide incentives for EE

Energy savings over baseline (by 2030)

25%

15%

25%

20%

2030 Objectives: Ø  40% reduction in energy intensity compared to 2010 baseline

Ø  Decreased energy consumption of 1.6% per year against baseline forecasts

Ø  Savings of approx. 10,665 KTOE p.a. (one-third of current demand) by 2030

SECTOR TARGET MILESTONES

Transport

v  Vehicle Fuel Efficiency Standards developed to all vehicles for Labelling (Road Transport) * v  E-‐Vehicle Program *

v  Reintegra5on of Urban Planning and transport energy use

v  Promo5on of Fuel Efficient Vehicle Technologies, Awareness raising (driver’s educa5on) to all public and private vehicle drivers *

v  Extend Energy Efficiency Program to include passenger and cargo ship vessels including the avia5on industry sector

EE & C ROADMAP: MILESTONES (2014 – 2030)

* -‐ Started / on-‐going

Transport •  Vehicle Fuel Efficiency Standards developed

• Risk management on vehicle conversion, e-vehicle programs

• Re-formulate coordination mechanisms

• Financial incentives for EE through vehicle taxes

• Promotion of key vehicle technologies

• Driver education and fleet management programs (2014>)

• EE programs beyond road transport (passenger and cargo ships, aviation fuels)

• Reintegration of urban planning and transport energy use



Long Term (2021-30)

-‐ Red Text Colour denotes that there was an iniBal iniBaBves going-‐on in this target program area.

TRANSPORT SECTOR

EE&C ROAD MAP: (2014 -2030)

22


Industrial

v  Develop Energy Service Companies (ESCO) *

v  Development of Minimum Energy Performance Standards (MEPS) for Motors

v  Consider Demand Response as an “Op5on” to conserve energy *

v  Incen5ve for the use of energy efficient technologies (pioneering energy efficiency projects)

v  Awareness campaign to promote EE&C in the industry (i.e., Energy Management System, Systems Op5miza5on) *



Industry • Link existing training projects with ESCO capacity building

• Develop sectoral focus programs to facilitate EE in energy intensive industries (e.g. cement and construction, sugar)

• Develop standards for motors

• Facilitate example models including ESCOs, finance

• Implement Demand Response (DR) programs

• Review of energy pricing

• Review inward investment rules for EE to remove distortions

INDUSTRIAL SECTOR



Long Term (2021-30)

Demand Response (DR) is defined as: “Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.” (Source: FERC)

EE&C ROAD MAP: (2014 -2030)

24


Residen7al Buildings

v  Enforce “Minimum Energy Performance Standards” (MEPS) for Home Appliances with emphasis on Space Cooling and Refrigera5on. *

v  Adop5on of “MEPS in Residen5al Building” through inclusion in the “Na5onal Building Code”

v  Promote EE&C through awareness raising, educa5on and communica5on campaign *



Residential Buildings • Enforceable

minimum energy standards for appliances, with a focus on space cooling and refrigeration

• Building envelope measures – cool roofs and insulation

• Develop role of utilities as key implementation partners and information providers

• Specific EE programs for low-income households

• Towards energy efficient housing precincts

• Inclusion of residential measures in Building Code

RESIDENTIAL BUILDING SECTOR



Long Term (2021-30)

EE&C ROAD MAP: (2014 -2030)

26


Commercial Building

v  Compliance to designate Company’s Energy Manager or Enercon Officer

v  Develop Energy Benchmark for Buildings

v  Adop5on of Guidelines on Energy Conserving Design in Buildings as a referral code of the Na5onal Building Code *

v  Promote ESCOs and financing model in Government retrofit projects *

v  Promote Green Building Ra5ng System *



Commercial Buildings • Reformulate

group to oversee EE measures in Building Code

• Retro-commissioning program for existing buildings

• Benchmarking and ratings for building information &reporting

• EE measures for inclusion in national building code

• Government demonstration retrofits to showcase ESCOs and financing models

• Promote green building ratings

• Incentive funds in place for EE, including private financiers

• Mandatory disclosure of commercial building performance

COMMERCIAL BUILDING SECTOR



Long Term (2021-30)

EE&C ROAD MAP: (2014 -2030)

28



Cross-Sectoral

v  Enactment of Enercon Bill into Law *

v  National Energy Consumption Database *

v  Heighten-up EE&C promotion across all energy demand sectors *

v  Promotion of Energy Efficiency in the Power Sector (Generation, Transmission, Distribution)

v  Promotion of EE&C projects in the LGUs *


Cross- Sectoral

• Support passage of Enercon Bill

• Establish EE database, data collection regime, M&E framework

• Establish enforcement regimes

• Strengthen ESCO capacity

• Continue awareness-raising

• National strategy for efficiency in power supply sector

• Stronger coordination with other levels of government (LGUs)

• Regular reporting and monitoring to commence

• Energy Efficiency and Conservation Center mandated and established

•  Sending market signals to provide incentives for EE •  Strengthening existing policy, advocacy, programs and institutional structures •  Harnessing private sector /partner finance •  Enabling innovation and new technologies

CROSS- SECTORAL



Long Term (2021-30)

EE&C ROAD MAP: (2014 -2030)

30 www.doe.gov.ph

Thank You !!!

An Energy Efficiency Roadmap

for the Philippines

2014-‐30

energy efficiency and conservation - switch … · 4) energy efficiency and conservation bill (16th...

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