Increasing energy efficiency, ensuring energy security

As the world grapples with the urgent realities of the climate crisis, energy efficiency has become a key strategy to reduce greenhouse gas (GHG) emissions, promote sustainable development, and ensure energy security. In 2019, the Philippines took a significant step by passing Republic Act 11285, or the Energy Efficiency and Conservation Act, to institutionalize energy efficiency measures across sectors. The act supports the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, which clearly states that governments around the world must take decisive action on energy efficiency to address the climate crisis.

The drive for energy efficiency has its roots in the oil crisis of the 1970s, which prompted industrialized nations to reconsider their energy consumption patterns and seek alternatives to fossil fuels. While many countries have implemented energy efficiency measures, the Philippines has faced unique challenges due to its geography and socioeconomic conditions.

In the 1980s, an energy crisis became apparent in the Philippines, characterized by inadequate electricity supply, frequent power outages, and heavy dependence on imported fossil fuels. The government recognized the need for a comprehensive energy policy that would increase supply and prioritize efficient use of energy. However, limited resources and a lack of government coordination hindered progress.

In response to the energy crisis and rising energy costs, various initiatives were launched in the 1990s and 2000s, including the creation of the Department of Energy, as well as campaigns to promote energy conservation in households and industry. However, significant legislative action did not take place until the passage of the Energy Efficiency and Conservation Act in 2019. The purpose of this act was to create a framework for improving energy efficiency in various sectors of the country.

The Energy Efficiency and Conservation Act is a landmark legislation aimed at promoting energy efficiency and energy conservation practices in the Philippines. It includes key provisions such as the establishment of energy efficiency programs, mandatory energy audits, energy labeling, public awareness campaigns, and compliance incentives. The provisions reflect a comprehensive approach to increasing energy efficiency, empowering stakeholders at all levels, and promoting a culture of conservation among citizens and businesses.

During the Energy Smart Forum 2024 organized by the European Chamber of Commerce in the Philippines in August 2024, Alexander Ablaza, President of the Philippine Energy Efficiency Alliance Inc., emphasized the importance of increasing energy efficiency in ensuring energy security.

Ablaza emphasized that one way is to shorten peak periods. He explained that by improving cooling efficiency, the southern peak can be shortened. In addition to upgrading non-cooling systems, improvements are also needed in the efficiency of cooling systems, outdoor lighting, household appliances and other residential loads during early evening peak hours.

Climate change mitigation

Energy efficiency, considered the first fuel in the clean energy transition, plays a key role in mitigating climate change. By reducing energy consumption and greenhouse gas emissions, it is considered one of the most cost-effective strategies to achieve climate goals. It is inextricably linked to all of the UN Sustainable Development Goals. It will contribute to achieving the Nationally Determined Contribution to the Paris Agreement, which is set at a 75 percent reduction in greenhouse gas emissions by 2030 compared to a 2010 “business as usual” scenario.

The International Energy Agency and the International Renewable Energy Agency project that to limit warming to 1.5 degrees Celsius, the world must double the global average annual rate of improvement in energy efficiency from about 2 percent to more than 4 percent per year by 2030. Focusing on energy efficiency can reduce dependence on imported fossil fuels, increase energy security and promote economic growth while addressing climate challenges.

One successful Philippine initiative involves government retrofitting of public buildings to improve energy efficiency. LED lighting systems and improved air-conditioning systems have led to significant energy savings.

The business process outsourcing sector, a major contributor to the Philippine economy, has also implemented energy efficiency measures. Optimizing data center cooling systems and using energy-efficient lighting lowers operating costs and aligns with the sector’s sustainability goals, attracting environmentally conscious customers and investors.

Energy efficiency offers a range of benefits: reduced energy consumption and costs, reduced carbon emissions, economic growth, job creation and increased resilience to the impacts of climate change. However, barriers to energy efficiency remain, such as upfront investment costs, lack of consumer awareness, bureaucratic delays, changing government priorities and the availability and affordability of energy-efficient technologies.

Making energy efficiency a key part of the Philippines’ energy policy has multiple benefits: reducing greenhouse gas emissions, ensuring energy security, promoting economic growth, and fostering social equity. With the worsening impacts of climate change, energy efficiency is emerging as a key tool to ensure a sustainable and resilient future for future generations. By prioritizing energy efficiency, the Philippines has the opportunity to lead the way in climate action and demonstrate that economic progress and environmental responsibility can coexist harmoniously.

The author is the founder and Chief Strategic Advisor of the Young Environmental Forum and the Director of Climate Tracker Asia Inc. He completed a course on climate change and development at the University of East Anglia (UK) and an executive program on leadership in sustainable development at Yale University (USA). Write to him at (email protected).