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Every kilowatt saved cuts costly power capacity additions and puts money back into consumers’ pockets – that’s the “hidden power” of energy efficiency.
However, in the broader energy security puzzle, that is often overlooked despite the formidable force it holds on easing grid stress and on sparing consumers from blackout predicaments.
In the Philippines, conversation on energy efficiency (EE) would just typically gather pace when scorching summer heat pushes the grid to breaking point – thus, to Filipino consumers, the ‘core message’ of this critical piece merely boils down to cutting back on electricity usage during inevitable power supply crunch.
Embedding EE into the energy mix equation
But energy efficiency is not just about trimming power use to ride out outages –it’s a game-changing genius that other countries are already weaving into their energy mix, equally recognizing its potential to reshape their sustainable energy future – because reduced electricity consumption will in turn help curb greenhouse gas emissions that could save us from cataclysmic ecological collapse.
On practical standpoint, household consumers can kick-start energy efficiency journey by swapping out old bulbs for LED lights and upgrading to energy-efficient appliances, while commercial and industrial (C&I) users can supercharge their savings with energy audits—with the help of energy service companies (ESCOs)—that way, they can optimize both electricity and fuel utilization.
Energy efficiency practices likewise stretch through investments in energy-efficient lighting and more advanced equipment for businesses; as well as seamless integration of smart technologies into building designs, and the creation of eco-friendly office spaces; or opting for renewable energy solutions in powering everyday operations.
Governments too must play a crucial role in promoting energy efficiency—not just by enforcing policies and offering incentives to drive investments, but by leading in adopting energy-efficient technologies, upgrading lighting systems and deploying fuel-efficient vehicle fleets—and in the Philippines, that is embodied in the Energy Efficiency & Conservation Law (Republic Act 11285).
Despite undeniable benefits, however, energy efficiency still fails to capture the public’s imagination as a “sexy” solution—perhaps because it lacks the flashy allure of high-tech gadgets, if compared to the latest iPhone 16; and it demands deeper dive to truly understand its long-term economic rewards to consumers. Beyond that, upgrading to energy efficient technologies similarly require hefty upfront investment, turning it into a formidable challenge for many who may hesitate to take the plunge.
These particular hurdles are something that industry movers in the Philippine Energy Efficiency Alliance (PE2) have likewise been actively navigating – working to shift perceptions and make EE highly desirable like the next big-tech breakthrough in the energy sector.
At the recent Asia Clean Energy Summit in Singapore, PE2 Alliance President Alexander Ablaza, who is also co-chair of the Asia Pacific ESCO Industry Alliance (APEIA), unveiled to a packed audience that Southeast Asia will need staggering $892 billion in EE investments by 2040 – a goal that must be fueled by innovative financing solutions like sustainability-linked bonds and debt facilities, real estate investment trusts (REITs), blended finance, carbon transition and retirement bonds, venture capital funds, green mortgages as well as performance contracting and leasing.
Amid current roadblocks to boosting EE investments, Ablaza is optimistic that this solution will gain mainstream momentum, especially so since the UNFCCC has highlighted energy efficiency as a key driver in tackling the global climate crisis.
Even the International Energy Agency (IEA) has hailed the COP28 declaration as “the most powerful acknowledgment by governments of energy efficiency’s pivotal role in clean energy transitions,” calling it a rallying cry for accelerated national action and a sharper focus on sustainable progress.
“We all look forward to the day when country energy plans include energy efficiency in their long-term energy mix. In Germany and the US, the markets see energy efficiency contribute an 8 percent and 15 percent share in their 2023 and 2015 primary energy supply, respectively,” Ablaza conveyed.
He similarly highlighted Cambodia’s bold move on incorporating energy efficiency into its Power Development Plan for 2022-2040, positioning it as a key resource in their power generation strategy, and contributing a significant double-digit percentage to overall energy mix.
“I am convinced that the Philippines will catch up with this planning trend in the next 5-10 years,” he said, adding that while energy efficiency hasn’t yet taken a significant pie in the primary energy mix outlined in the Philippine Energy Plan for 2023-2050, it still envisions a clean energy future forecasting sharp decline in the use of oil, coal and overall electricity across key sectors like transport, households, industry, services and agriculture.” In his view, that scenario offers an “effective transition toward the desired integration of energy efficiency in the energy mix.”
Ablaza also expressed his eager anticipation for a future where energy markets no longer need to plan or build unwarranted new generation, production, transmission or distribution capacities—because energy efficiency already trimmed such capacity addition from the start.
Taking everything into account, energy efficiency is indeed the ‘camouflaged gem’ that fuels energy security and could improve everyday life for consumers —it’s time we stop ignoring it and start cashing in on its benefits.
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