As an implementing partner of the EU grant-funded SWITCH Asia High Efficiency Motors (HEMS) project, ADFIAP together with the project lead, the Institute of Integrated Electrical Engineers of the Philippines (IIEE), conducted the “Financing SWITCH HEMS Energy Efficiency Project Workshop” on April 4-5, 2016 at the Manila headquarters of ADFIAP member, Land Bank of the Philippines.
The workshop was participated by 45 Landbank account officers, project officers, risk officers and appraisers from the Bank’s head office, 22 lending centers nationwide and LBP Leasing. The workshop covered the following modules: (1). the HEMS program, (2) energy efficiency concept; (3) ESCOS and the ESCO concept and model; (4) the HEMS financial model (technical aspect) ; (5) the HEMS financial model (financial aspect) ; (6) credit risks and mitigants for HEMS project; and 7) project implementation agreement for an ESCO project. Resource speakers were Atty. Alberto B. Reyno, Managing Principal and Ms. Arlene S. Orencia, Head-Projects and Programs of ADFIAP Consulting, and Messrs. Marvin Bathan, Project Director and Raymond Marquez, Consultant of the HEMS Project. Also in attendance from ADFIAP Consulting were Ms. Cora Conde, Group Head who gave the opening remarks and Ms. Cecile Ibarra, Head – Training and Advocacy, who acted as workshop facilitator.
The HEMS project will tap, among others, energy service companies (ESCOs) in converting regular motors into high-efficiency motors to achieve savings through operational efficiency. ESCOs provide a broad range of energy solutions, including designs and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation, energy supply and risk management. ESCOs start by performing an analysis of the project, designs an energy efficient solution, installs the required elements and maintains the system to ensure energy savings during the payback period. The savings in energy costs are often used to pay back the capital investment of the project over a period of time.
The workshop is among the deliverables of ADFIAP under the project’s work package on capacity building for financial institutions aimed at building the capacities of banks to evaluate HEMS investments of electricity-intensive industries.
The HEMS project, led by IIEE, is a 4-year capacity-building program that aims to increase energy efficiency of electricity-intensive industries and achieve reduction in electricity consumption as well as to reduce contribution of industries in greenhouse gas (GHG) emissions. Specifically, the HEMS project aims to increase the deployment of more efficient electric motors and drive systems in Philippine industries. The other partners of the HEMS project include the European Chamber of Commerce of the Philippines (ECCP), Asia Society for Social Improvement and Sustainable Transformation, Inc. (ASSIST), Association Action for Sustainable Development, and the International Copper Association of South East Asia (ICASEA).
The same workshop will be replicated in other financial institutions. Please contact [email protected] should there be interest to hold said workshop in your organizations. For more details about the HEMS program, please visit its website at www.hems.ph.