Philippine Industrial Energy Efficiency Project (PIEEP)

Energy Conservation Not doing without energy, But doing more with it.

The Philippine Industrial Energy Efficiency Project (PIEEP) is a 5-year project created through the collaboration between the Department of Energy (DOE), the Department of Trade and Industry (DTI), the United Nations Industrial Development Organization (UNIDO) and the Global Environment Facility (GEF). The project is closely in line with the Philippine Development Plan 2011-2016 and the National Climate Change Action Plan 2011-2028.

The project aims to promote sustainable energy management system and achieve energy efficiency best practices within the Philippine industrial setting with the purpose of obtaining energy savings and contributing to climate change mitigation. This objective will be achieved through the introduction of the Energy Management System based on ISO 50001 framework, Systems Optimization (steam, compressed air and pumps) and Financial Capacity Enhancement. These 3 key components are directed towards specific targets in the industrial sector namely Chemicals, Food & Beverage, Basic Metals & Steel and Pulp & Paper.

PIEEP's plan targets include savings of 1,143,149 GJ in energy and 359,877 KWh of electricity consumption as well as a corresponding GHG emission reduction of 261,754 tons of carbon dioxide over the entire project duration. Sources of the Co-financing include Land Bank of the Philippines and the Bank of the Philippines Islands (BPI) with both offering USD 10 M each in the form of standby loan project window on energy efficiency project.


Energy Management System (EnMS) can be defined as a set of interrelated or interacting elements to establish an energy policy, energy objectives, processes and procedures to achieve the objective . It is an effective tool which properly integrates energy efficiency into corporate culture and daily management that leads to various benefits including lower energy consumption, reduced production costs, increased operational reliability and lowered GHG emissions. These benefits would contribute to the increase in overall competitiveness of the business industry sector.


Systems Optimization (SO) provides a method of assessing systems to identify energy performance improvement opportunities and actions that can provide significant energy savings with limited capital investments leading to more reliable operations. Unlike the more common "component approach" which involves segregating components and analyzing their performance in isolation, the "system approach" involves looking at how the whole group of components function together and considers how each component can impact the whole system. Systems related to compressed air, steam and pump are the focus of SO and are identified to be the locations where much energy savings potential exists. The former's estimated efficiency gain is at 2-5% while the latter is at 15-30% while its foreseen benefits are the same as that with EnMS.


Financial Capacity Enhancement for industrial energy efficiency projects increases the availability of financial opportunities and support and is in close cooperation with several national banks. Activities relates to this aspect include the development of training material and tools, training for financial institutions and industrial enterprises, harmonization of evaluation criteria by financial institutions, compilation and dissemination of information on financial incentives/schemes available and workshops on packaging of loans.

PIEEP's target for Expert's Training and End-user's Seminar Workshop is to train and certify 40 local experts and 500 factory personnel on EnMS; 40 local experts, 400 factory personnel and 40 vendors on SO; and implement 40 projects each for both EnMS and SO. As of December 2015, the EnMS aspect for PIEEP has been able to; train 44 National Experts, register 452 participants for Awareness Workshop for top management and conduct User's Training for 296 factory personnel. For Systems Optimization, PIEEP has trained 541 factory personnel, 23 vendors, 4 National Experts for Steam Systems and 6 National Experts for Compressed Air System. For projects, both EnMS and SO each have 20 projects that have been successfully implemented.

The technical foundation of the knowledge shared by PIEEP is scientifically/theoretically sound but more importantly, the benefits that have been claimed under its name has been proven and realized in actual industrial scenarios internationally. The potential for increased energy and process efficiency is indeed immense and it only makes it more important that majority, if not all, of the related industries gain access to these practices and embed it to the very foundations of what they are, and what they will eventually become.