Energy Conservation “Energy Conservation is the Foundation of Energy Independence” – Tom Allen What Is Energy Conservation? Energy conservation means reducing the consumption of energy by producing or using less of it. Energy conservation is “the prevention of the wasteful use of energy, especially in order to ensure its continuing availability.” Energy conservation involves using less energy by adjusting your behaviors and habits. What Is Energy Efficiency? Energy Efficiency is doing more with the same amount of energy or less energy. Energy efficiency involves the use of technology that requires less energy to perform the same function. Energy efficiency involves the use of technology that requires less energy to perform the same function. Historical Directives and Issuances on Energy Conservation and Energy Efficiency 1973-1974 1980 Oil Embargo $9.35 per barrel 1991 2018 Crude Oil Oil Price • $37.42 per Increase $20/20 • • Batas Pambansa 73: per barrel barrel • Energy Conservation • Law (1980-1990) Oil Prive Ave. RA 7638 - 1992 RA 7648 - 1993 $58.15 per >12hrs. Brownouts barrel RA No. 11285 – IPP Contracts (1993) Energy Efficiency and ERB DSM Framework Conservation Act (1996) 1986-1990 Revolutionary Government Oil Glut • BNPP not operated Highest Ave. $10 per barrel • No Additional PP Price Increase • Oil Crises $29.10 per barrel 1979 1986 $86.46 per barrel OPEC Crude Oil Price Ave. $66.37 per barrel 2012 2019 Countries with Energy Efficiency and Conservation Law Republic Act No. 11285 - “Energy Efficiency and Conservation Act of 2019” An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects. Major Provisions A. General Provisions • Short Title • Declaration of Policy • Scope • Definition of Terms B. Roles and Responsibilities of the 22 Government Agencies C. Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) D. Role of LGU’s E. Designated Establishments F. Certification for Professional Competency and Accreditation for Professional Services. G. Energy Performance Standards and Labeling Requirements H. Demand Side Management I. Incentives Short Title This Act Shall be known as the “Energy Efficiency and Conservation Act”. Declaration of Policies a) Institutionalize energy efficiency and conservation as a national way of life geared towards the efficient and judicious utilization of energy by formulating, developing, and implementing energy efficiency and conservation plans and programs to secure sufficiency and stability of energy supply in the country to cushion the impact of high prices of imported fuels to local markets and protect the environment in support of the economic and social development goals of the country; b) c) d) Promote and encourage the development and utilization of efficient renewable energy technologies and systems to ensure optimal use and sustainability of the country’s energy resources; Reinforce related laws and other statutory provisions for a comprehensive approach to energy efficiency, conservation, sufficiency, and sustainability in the country; and Ensure a market-driven approach to energy efficiency, conservation, sufficiency, and sustainability in the country. Scope This Act shall establish a framework for introducing and institutionalizing fundamental policies on energy efficiency and conservation, including the promotion of efficient and judicious utilization of energy, increase in the utilization of energy efficiency and renewable energy technologies, and the delineation of responsibilities among various government agencies and private entities. Roles and Responsibilities of the 22 Government Agencies Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) Composition of the Committee (Secretary Level) Chairperson: Department of Energy (DOE) Members: 1. Department of Budget and Management (DBM) 2. Department of Finance (DOF) 3. Department of Trade and Industry (DTI) 4. Department of Transportation (DOTr) 5. Department of Science and Technology (DOST) 6. Department of Interior and Local Government (DILG) 7. Department of Public Works and Highways (DPWH) 8. National Economic Development Agency (NEDA) IAEEC Secretariat: Energy Utilization Management Bureau (DOE-EUMB) Specific Functions of the IAEECC a. Energy conservation means reducing the consumption of energy by producing or using less of it. b. Review and Approval of proposed capital projects and energy cost operating budgets. c. Technical and consultative assistance. d. Recommend specific operations and maintenance procedures and modifications and capital projects. e. Conduct survey, audit, technical analysis and other research or investigations f. Issue report on status of government energy efficiency projects. g. Provide strategic direction in the implementation of Government Energy Management Program (GEMP). h. Develop guidelines to aid IAEECC Role of the LGU’s LGU to develop and implement the following: a) Development of the Local Energy Efficiency and Conservation Action Plan (LEECP) b) Designation of Local Energy Efficiency and Conservation Officer (LEECO) c) Designate National Energy Efficiency and Conservation Coordinating Officer (NEECCO) d) Assist DOE in the monitoring of Designated Establishments compliance on sets of guidelines and regulations For New Construction and Existing Buildings, LGUs shall implement the following measures in accordance with building permit and issuances: a) Minimum Requirements as specified in the Guidelines on Energy Conserving Design on Buildings issued by DOE. b) Retrofit of building shall also comply with the same. Designated Establishments TYPE 1 ESTABLISHMENTS • Range: 500, 000 to 4, 000, 000 kWh Annual Energy Consumption • Employ a Certified Energy Conservation Officer (CECO) TYPE 2 ESTABLISHMENTS • Range: Above 4, 000, 000 kWh Annual Energy Consumption • Employ a Certified Energy Manager (CEM) TYPE 3 ESTABLISHMENTS • Range: 100, 000kWh but Less than 500, 000 kWh Annual Energy Consumption Obligations of Designated Establishments a. Integrate an Energy Management System Policy into the business operation based on ISO 50001 framework or any similar framework. b. Submit an Annual Energy Consumption Report and an Annual Energy Conservation Report to the DOE by the 15th day of April of every year. c. Set up programs that promote energy efficiency, conservation, sufficiency and installation of RE Technologies. d. Keep records on monthly energy consumption data. e. Improve average specific energy consumption (SEC). f. Employ CECO for Type 1 and CEM for Type 2 DE. g. Duly notify DOE on the appointment of or separation of CECO or CEM from their service within 10 working days from the effectivity of these personnel action. Certification for Professional Competency and Accreditation for Professional Services Professional Competency: 1. Certified Energy Conservation Officer (CECO) Type 1 DE: 500, 000 to 4, 000, 000 kWh Annual Consumption Certification to be issued by CHED 2. Certified Energy Manager Type 2 DE: Above 4, 000, 000 kWh Annual Consumption Certification to be issued by CHED 3. Certified Energy Auditor Certification to be issued by DOE Responsibilities of CECO and CEM a) Manage the Energy consumption of facilities, equipment and devices b) Administering the following: • Implementation and improvement of energy efficiency measures; • Conduct of regular energy audit; • Energy Monitoring and Control; and • Preparation of periodic energy consumption and energy conservation program Responsibilities of CECO and CEM Certification of Energy Services Company (ESCO) Certification to be issued by DOE Energy Services Company (ESCO): Offers multi-technology services and goods towards ensuring cost effective performance and guaranteeing energy saving Energy Performance Standard and Labeling Requirement a. Minimum Energy Performance (MEP) • • Establish MEP for the commercial, industrial and transport sectors. It shall be developed by DOE with relevant stakeholders. MEP is a unit of measurement of energy consumption per unit of floor area for buildings; product volume for manufacturing; and distance for motor vehicles b. Energy Labelling for Products and Equipment • • c. Fuel Economy Performance for Transport Vehicles DOE shall prescribe energy label for all energy consuming products, devices and equipment and motor vehicles MEP is a unit of measurement of energy consumption per unit of floor area for buildings; product volume for manufacturing; and distance for motor vehicles Demand Side Management Program for the Electric Power Industry a. Reduction of energy consumption through effective load management resulting to the decrease of power demand and the migration of power demand from peak to off-peak periods; or b. Measures undertaken by the distribution utilities to encourage end users to properly manage their loads to achieve efficiency in the utilization of fixed infrastructure in the systems. Incentives Fiscal Incentives DOE to issue Certification to BOI on Energy Efficiency Projects of private entities in accordance with EO 226 otherwise known as the Omnibus Investment Code of 1987. Non-Fiscal Incentives • Provision of Awards and Recognition for innovations in EE&C best practices, projects and products • Provision of technical assistance from government agencies in the development and promotion of energy efficient technologies Why Is Energy Conservation Important? How Will Energy Conservation Allow You To Save Money? • It reducing our reliance on non-renewable energy resources (like fossil fuels) • It lessen the demand for new power plants. • It helps save you money on energy costs, including utility bills and other energy bills by: Delay fossil fuel price increases Lower your utility bills Provide you with more opportunities for tax credits and rebates How Does Energy Conservation Help the Environment? • It cuts down on expanding development where natural resource extraction (such as oil or even lithium) is impacting natural areas. • It directly reduce the amount of greenhouse gas emissions entering the Earth’s atmosphere. Benefits of Energy Efficiency & Conservation For the National Government • • • • • • • • • • • • Energy Savings GHG Emissions Energy Security Energy delivery Energy Prices Macro-economic impacts Poverty Alleviation Health and Well-being Employment Local Air-pollution Resource Management Public Budgets. For the Designated Establishments • • • • • • • • Energy Savings Energy Prices (Industrial) Productivity Health and Well-being Local Air-pollution Resource Management Disposable Income Asset Values What are the Ways of Conserving Energy 10 Ways to Conserve Energy at Home Use Energy efficient light bulbs. Upgrade Appliances Do laundry efficiently Turn your refrigerator down Clean or replace air filters Air dry dishes and clothes Turn off all lights, appliances and electronics when not in use • Use your window shades • Repair any electrical issues • Take shorter showers. • • • • • • • Energy Efficiency and Conservation Roadmap (Philippines 2017-2040) Philippine Government Strategies and Priorities for Energy Efficiency Short Term 2017 – 2020 Transport Sector • • • Closer support to manage identified risks in vehicle conversion and e-vehicle/e-trike programs Fuel Efficiency Ratings developed for light-duty vehicles, vans/ jeepneys, tricycles and heavy vehicles (trucks) Re-formulated coordination mechanisms with other agencies Manufacturing Sector • • Commercial Building Sector • • • Reformulate group to oversee EE measures in building code Retro-commissioning program for existing buildings Benchmarking and ratings for building information and reporting Cross-Sectoral • • • Build stronger coordination with LGUs and private sector Establish EE database, data collection regime and monitoring and evaluation framework Conduct information and education campaigns • Minimum Energy Performance for industrial devices Reporting by designated energy consumers Develop sectoral focus programs to facilitate EE in energy intensive industries (cement and construction, sugar) Residential Building Sector • MEP for appliances • Building envelope measures • Support passage of Enercon Bill Medium Term 2021 – 2030 Transport Sector • • • Financial incentives for EE through taxes Promotion of key vehicle technologies Driver education and fleet management programs Manufacturing Sector • • • Commercial Building Sector • • • EE measures included in national building code • Promote benchmarking and building ratings Cross-Sectoral • National strategy for efficiency in power supply sector • Establish enforcement regimes • Enhanced reporting and monitoring Update MEP for industrial devices Facilitating example business models including ESCOs and finance Implement demand side management programs Enhanced reporting and management by designated energy consumers Review of energy pricing models Residential Building Sector • Develop role of utilities as key implementation partners and information providers • Specific EE programs for lowincome households Make Energy Conservation a Worldwide Motivation!
