CASE STUDY

Energy Efficiency: Making It Work Nationwide

Amid a looming energy gap resulting from increasing demand for energy, power consumers in the Philippines are burdened with one of the most expensive electricity rates in Asia, if not the world.  Photo credit: ADB 2010.
Amid a looming energy gap resulting from increasing demand for energy, power consumers in the Philippines are burdened with one of the most expensive electricity rates in Asia, if not the world. Photo credit: ADB 2010.

The formula: installing energy efficient lighting systems in government offices and parks, distributing fluorescent lamps nationwide, and establishing a green labeling system for buildings.

Overview

In the Philippines, higher power demand is stretching generation capacity. The Philippines has one of the most expensive power rates in the world ($0.26 per kilowatt-hour in 2013). The steep cost of power results from reliance on imported fuel for power generation, scattered geography, inefficient transmission and distribution systems in some areas, a regulatory framework that contains a complex margin of protection mechanisms for supply and transmission companies, and debt and cost recovery issues for legacy infrastructure. Given the impending shortage of energy supply, the cost of electricity will likely increase.

With assistance from the Asian Development Bank, the government implemented the Philippine Energy Efficiency Project as an interim measure to mitigate a projected energy supply deficiency and reduce power consumption in residential and public sectors.

The project retrofitted 135 government office buildings and almost 4,000 public park and streetlights with energy-efficient lighting systems, distributed 8.6 million compact fluorescent lamps nationwide, and established a green labeling system for buildings.

These actions yielded a cumulative energy savings totaling 321 gigawatt-hours per year and facilitated development of the Green Building Rating System, which has certified 32 government buildings for sustainability.


Project information


Project snapshot

  • January 2009: Loan Approval Date
  • December 2013: Project Completion Date
  • US$ 31.1 million: Loan amount
  • Financing
  • Executing agency
    • Department of Energy
  • Others
    • Republic of the Philippines: Borrower

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Meet the expert

  • Rehan Kausar    
    Portfolio Specialist, Southeast Asia Department, Asian Development Bank

    Rehan Kausar is a portfolio specialist at the Asian Development Bank in Manila, Philippines in the Southeast Asia Department. He primarily focuses on project implementation and project-related issues across the developing member countries of Southeast Asia. He started his career in the energy sector for 15 years after which worked as a consultant in both the energy and petrochemical areas prior to joining the World Bank as a staff consultant on infrastructure policies in 2005. He later joined the Asian Development Bank and was assigned to the to the reconstruction and rehabilitation of Aceh and Nias.

   Philippines, Energy
   Last updated: April 2017

 




Disclaimer

The views expressed in these articles are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.




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