THE Philippine Energy Efficiency Alliance (PE2) called on government to allocate at least P55 billion for energy efficiency projects in the economic stimulus plans to cope with the pandemic.
In a position paper, PE2 president Alexander Ablaza cited data proving these projects are cost-effective and are swift job generators.
“In the US (United States), the largest contributor of new jobs in the energy sector in 2019 was energy efficiency. Energy efficiency contributed a hefty 45 to 55 percent share of new jobs in the US energy sector in the last three years. A survey of 35 energy efficiency programs and stimulus packages across the EU (European Union), UK (United Kingdom), US and Canada concludes that an average 19.3 jobs were created for every 1 million euros invested in energy efficiency,” Ablaza said.
Comparison of Labor intensities between Build, Build, Build Program and Energy Efficiency Investments in the Philippines
He said a survey of job generation impacts of actual energy efficiency projects from accredited energy service companies (ESCOs) showed this type of projects has a long value chain: importation; manufacture; assembly; warehousing; product supply chain logistics; wholesale and distribution; retail, marketing and customer services; fabrication; inspection; energy audits, measurement and verification; engineering; procurement; contracting; financing; accounting; installation; construction; testing; operation; maintenance; and asset management.
The survey also showed energy efficiency investments ranging from P50 million to P200 million create 18 to 200 jobs.
“(By) carving out a proposed P55 billion component of the proposed Philippine Economic Stimulus Act for energy efficiency improvements by national government agencies, government owned and controlled corporations, state universities and colleges, local government units, water districts and micro, small, medium enterprises, PE2 estimates that 41,200 jobs can created from 2021 to 2023,” Ablaza said.
PE2 said energy efficiency projects can be planned, designed and completed to deliver energy savings and job creation impacts in just 6 to 12 months for each commissioned project.
“The economic payback of energy efficiency projects would be among the shortest in the list of proposed economic stimulus interventions. Compared to mainstreame infrastructure development, energy efficiency projects have minimal environmental impacts and are still the least-cost means for the country to meet its energy security objectives and greenhouse gas emission reduction obligations,” Ablaza added.
