PEZA stands with DoE to amplify energy security, eco-friendly technologies in the country

The Philippine Economic Zone Authority (PEZA) fully supports the Department of Energy in promoting energy security and raising awareness of environment-friendly technologies nationwide in observance of the annual National Energy Consciousness Week.

PEZA Director General Tereso O. Panga stated, "As we always tell our registered business enterprises and future investment partners, one of PEZA's non-negotiables is the protection of the environment."

"Accelerating the implementation of our initiatives and advocacies towards energy efficiency and clean energy transition is in line with DoE's target of 35 percent renewable energy mix by 2030. Moreover, to remain competitive in the world market that now advocates responsible consumption and production, our locator companies need to adopt energy efficiency measures and renewable energy technologies," Panga added.

Aimed at attracting more strategic investments and strengthening the ease and cost of doing business in the economic zones, PEZA has implemented programs and policies over the years encouraging its locator companies to exercise sustainability practices in their manufacturing processes and contribute to reducing carbon footprints and transitioning to a low-carbon economy.

PEZA energy efficiency initiatives, test bed for emerging technologies

Creating and establishing more resilient, inclusive, and sustainable economic zones is the dream of PEZA, especially with the reinstatement of the ecozone development program in the Philippine Development Plan 2023 – 2028 under this Administration.

"Our ecozones have become a test bed and showcase for emerging technologies such as the country's first waste-to-energy facility, anaerobic and nano-filtration processes in wastewater treatment, district cooling, biggest capacity roof-mounted solar generation system, various AI-robotic industry applications as well as SDG and circular economy-driven approaches," said Director General Panga.

To provide the best location and business ecosystem for investors, digital payments through cashless and paperless transaction systems were introduced as another first in championing ease of doing business. PEZA has recently pursued industry collaborations and strategic alliances with the DTI, DOE, DENR, DICT, DOST, BOC, BI, DOLE, and IPOPHIL embracing the whole of government approach in attracting hard, long-term Foreign Direct Investments to our shores.

In keeping pace with advanced economies and the integration of digital technologies, PEZA robustly promotes Industry 4.0 in its economic zones and adds culture, innovation, and sustainability to its core values.

With the continued rise of electronic vehicles in the country, PEZA has the necessary key supply chain for electronic vehicle components and electronic bicycles that is conducive to greenhouse gas emission reduction and avoidance.

Our ecozones are evolving, new frontiers in ecozone development are set to be introduced side by side with conventional types of ecozones. Aquamarine and renewable energy parks are envisioned to contribute to the country's food security and energy self-sufficiency. Another first from PEZA.

Likewise, PEZA identified its priority sectors in the coming years as its blueprint to attract more investments in the Philippines. A key addition to this is the integration of SMEs into the ecozone value chain for more inclusive and sustainable development.

On eligible energy efficiency projects and policies enacted

The eligible energy efficiency projects with the entitlement to incentives are the manufacture for export of energy efficiency products, embedded renewable energy generation facilities, developers of energy-efficient buildings, ecozone retail electricity suppliers doing supply contracting and demand-side management for ecozone contestable customers, and embedded power generation and distribution.

In addition to registering renewable energy and energy efficiency projects under the CREATE and the Strategic Investments Priority Plan, among the policies PEZA has enacted are the following:

1. Board Resolution No. 15-235 allows tax- and duty-free importation of solar panels and LED lightings;

2. ISO 50001 capacitating locator companies on energy management systems; and

3. Solar rooftop projects in the economic zones as the off-taker of the generated energy to be blended with power supplied to locator companies.

More collaborations

PEZA is collaborating with several reputable organizations and institutions to benefit both developer/operator and locator companies. Such as the case with World Bank – International Finance Corporation where the partnership allows a more environment-conscious FDI locating in ecozones of private developers. Meanwhile, for locator companies, it would mean access to global market that has become stricter in implementing trade policies pursuant to climate change initiatives.

On the other hand, PEZA is likewise collaborating with UNIDO on an eco-industrial park framework under which all PEZA ecozones should be established and managed, focusing on responsible production and consumption towards a circular economy.

Towards the greening of our economic zones, PEZA has entered Memorandums of Understanding (MOUs) with solar companies for installing of solar rooftops in the 4 public economic zones, namely the BCEZ, CEZ, MEZ, and PEZ. The latter is supported by JICA aimed at creating the first microgrid ecozone, utilizing renewable energy and modular nuclear if already available.

Further, pursuant to Section 33 of the PEZA Law which provides for the protection of the environmental quality of ecozone location, PEZA adopted GTZ Eco-Industrial Park (EID) framework. Through this policy, PEZA seeks to mitigate the adverse effects of industrialization on the environment.

In 2012, PEZA entered a Memorandum of Agreement (MOA) with ECCP on energy savings program, which resulted to seminars nationwide together with plant energy audits. Under this MOA, service providers were accredited to help locators reduce energy consumption and make their manufacturing operation cost effective.

In response to RA 9513 (Renewable Act of 2008), PEZA registered embedded Renewable Energy (RE) generation facilities with a total capacity of 148 MW (i.e., 118 MW Solar, 10 MW Waste-to-Energy, and 20 MW Biomass) as of the end of December 2020.

In May 2016, under a United Nations Industrial Development Organization grant, PEZA inked with DOE a MOU on the Energy Management System. It is a capacity building for locator companies focusing on a system optimization approach on Steam, Compressed Air and Pumping System and User Training on Energy Management Standard (ISO 50001).

The following year, PEZA started collaborating with the European Chamber of Commerce of the Philippines, the­ Department of Energy, and the Bureau of Product Standard to introduce highly efficient Motors to locator companies and encourage them to switch under the financing scheme of participating local banks.

Director General Panga emphasized, "PEZA is relentless in its pursuit of implementing energy conservation, adopting sustainability measures, optimizing the use of ecological resources in the ecozones, and promoting energy efficiency programs to our locator companies and ecozone developers. We continue to go above and beyond our brand of service towards building a more healthy, smart, and green ecosystem in our economic zones."

"Through our collaboration with DOE to leverage distributed energy and reduce carbon emission, PEZA will push for the development of more eco-industrial parks that will host locator companies into clean and green production as well as SDG-driven investments," Panga noted.