Regional Business & Climate Summit...

Regional Business & Climate Summit 2017“Business Opportunities in Climate Change”July 27, 2017

Jo Ann B. Eala Vice PresidentSustainable Energy Finance and Specialized LendingBank of the Philippine Islands

BUSINESS PAIN

2BPI Sustainable Energy Finance (SEF) Program

Philippine Energy Situation

BUSINESS OPPORTUNITY

Reality: Philippine Energy Cost

Phil$0.25

Japan $0.23

Italy $0.20

U.K $0.18

AUS $0.16 H.K $0.15

Sing $0.11 Thai

$0.10 US $0.09 Mal $0.09 Korea $0.09

Ind $0.07

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Electricity in the Philippines:

• Among the most expensive in the world

• Unreliable source of power

Electricity Rates in Select Countries(US $ cents per kilowatt hour, 2016)

Source: Manila Electric Company

BPI Sustainable Energy Finance (SEF) Program

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BPI 16-City Climate Vulnerability Study

Business Risk Assessment and Management of Climate Change

wwf.org.ph/brstudy

Pain: Philippine Climate Crisis


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Pain: Globalization


• Need for COMPETITIVENESS of Philippine Companies

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Pain: Philippine Energy Mix 2016

Coal34.6%

Oil-based16.9%

Natural Gas16.0%

Geothermal8.9%

Wind2.0%

Solar3.6%

Hydro16.9%

Biomass1.1%


Total RE = 32% Total Non-RE = 68%

Opportunity: PHILIPPINES Among the Fastest ASEAN Economy

2016

2017 2ndQuarter

2018Forecasts asof March 30


Bank of the Philippine Islands

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Total Assets: P 1.7 T ($ 35 B)

Net Income: P 22.05 B ($ 450 M)

Customer count 7.5 M

➢First bank in Southeast Asia;

established in 1851

➢First Automated Teller Machine (ATM)

➢First bank to issue a bank loan

➢Philippine bank with an investmentupgrade from Capital Intelligence, FitchRatings, and Moody’s Investor Service

➢First in Sustainable Energy Finance

Banking Industry “FIRSTS”


BPI in 2016

BPI Loan Application Requirements

• Board Resolution with Secretary’s Certificate to borrow and open deposit accounts (with authorized signatories)

• Articles of Incorporation and By Laws

• Latest General Information Sheet (GIS)

• Latest Audited Financial Statements (AFS, 3 years for existing clients; 5 years for new clients)

• Latest interim Financial Statements (FS)

• Financial projections/ Feasibility Studies for RE


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2008

BPI Sustainable Energy Finance (SEF) Programwon the G20 SME Finance Challenge in 2012 besting over 100 entries from different countries.

➢First and largest Sustainable Energy Financing (SEF)

➢Dedicated SEF team with Renewable Energy and

Energy Efficiency Projects in the Philippines


Our BPI SEF team helps big and small

companies through:

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BPI and IFC Partnership – SEF Program Benefits


✓ Free energy walk-thru audit✓ Free technical evaluation of

project proposals and feasibility studies

✓ RSF with IFC for a 1.05% fee✓ Free technical training sessions ✓ Free vendor track record

verification✓ Giving assistance from a highly

trained SEF team

BPI SEF Project Types

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➢ Improve efficiency of operations; lower costs by reducing power consumption


Innovation 1: BPI-IFC Risk Sharing Facility

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SOLUTION:

BPI-IFC RSF provides 50% guaranty cover for loans up to P200M

Funding Problem:-Financial and Qualitative requirements of banks-Lack of collateral -Need for guarantees -Need for green project incentives (green project owners and users)


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Innovation2: FREE Technical ConsultationsSOLUTION:

FREE Renewable Energy (RE) and Energy Efficiency (EE) consultations

• At conceptualization stage

• Evaluation of project proposals and feasibility studies

• Post project

implementation

monitoring

Problem:

- Client experience

- Technology vendor capability

- Technical Feasibility

- Need for more successful Philippine examples


Engr. Silver T. Navarro, RE Consultant

Engr. Raymond A. Marquez,

EE Consultant

ENERGY EFFICIENCY

150 Projects

BPI Sustainable Energy Finance Projects by Geographic Location (Total: 267)

20 Projects2 Projects39 Projects2 Projects7 Projects

CLIMATE RESILIENCE

47 Projects

Sample Projects under the

BPI SEF Program



Energy Efficiency (EE)

Sample Projects

Goshen Land Capital, Inc.

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✓ Construction of 20-unit, 7-level, Wharton Condominium, 3rd Bldg in North Cambridge, Baguio City.➢ Ave. energy savings: 31 Mwh/year or Php 388k /year➢ Est. GHG avoidance: 14 tCO2/year

Carbon Sequestered

57Trees grown in

1 year


Guijo Suites

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✓ Construction of a 55-room second hotel building (Makati)➢ Ave. energy savings: 156 Mwh/year or Php 1.5M /year➢ Est. GHG avoidance: 68 tCO2/year

Carbon Sequestered

284Trees grown in

1 year


Mets Logistics Inc.

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✓ Employed energy efficiency innovations in the expansion of their cold storage facility➢ Average energy savings: 417 Mwh/year or Php 3.7M /year➢ Estimated GHG avoidance: 182 tCO2/year

Carbon Sequestered

760Trees grown in

1 year


Imperial Homes

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First solar powered, with lithium battery, low cost housing subdivision: Via Verde Village, Sto. Tomas, Batangas➢ Est. Ave. energy generation: 529 MWh / year or P5M/year➢ Est. GHG avoidance: 2,380 tCO2/year


Carbon Sequestered

964Trees grown in

1 year

Sheridan Beach Resort & Spa

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First Green Resort located in Sabang PalawanLighting and HVAC; rain harvesting and water recycling system; waste managementSolar and micro wind power installation➢ Est. Ave. energy savings: 642 MWh/year or P5M /year➢ Est. GHG avoidance: 289 tCO2/year


Carbon Sequestered

1,169Trees grown in

1 year

Italpinas Euroasian Design & Eco-Dev Corp.

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Construction of Phase 2 Tower, Primavera Residences, a 10-storey mixed-usedcondominium building, Cagayan de Oro City.

Ave. energy savings: 881 Mwh/year or Php 4.9M /yearEst. GHG avoidance: 383 tCO2/year

Carbon Sequestered

1,605Trees grown in

1 year


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✓ Highly energy efficient cold storage facility (Quezon City and Taguig City) using 2-stage reciprocating compressors fully welded to prevent losses in working pressure that ensure optimum use of electricity while using green refrigerants

✓ Accredited by National Meat Inspection Service under “Triple A” category➢ Average energy savings: 2,280 Mwh/year or Php 13M /year➢ Estimated GHG avoidance: 426 tCO2/year

Glacier Refrigerated Services Corporation


4,153Trees grown

in 1 year

Carbon Sequestered

GMR Megawide Cebu Airport Corp.

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Retrofit of old terminal 1 and construction of terminal 2Est. ave. energy savings: 6k Mwh/year or Php 42.7M/yearEst. GHG avoidance: 2k tCO2/year

Carbon Sequestered

10,928Trees grown in

1 year


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Philippine Spring Water Resources Inc.

✓ Acquired brand new PET water bottle manufacturing system and labelling machine for their Cebu and Bulacan manufacturing plants➢ Average energy cost savings: 10,341 Mwh/year or Php 83 M/year➢ Estimated GHG avoidance: 4,567 tCO2/year

18,834Trees grown

in 1 year

Carbon Sequestered



Renewable Energy (RE)

Sample Projects

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Biomass: R & I Marketing (Sps. Ronnie and Imelda Dayon)

✓ Construction & installation of a biomass (rice husk) powered rice drying facility➢ Est. ave. energy production : 892

Mwh/year or Php 5.8 M/year➢ Estimated GHG avoidance: 401 tCO2/year

1,625Trees grown

in 1 year

Carbon Sequestered


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Biogas: Venvi Agro-Industrial Ventures Corp.

Carbon Sequestered

6,129Trees grown in

1 year


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✓ 656kWp Solar System for a Mall in Laguna➢ Annual energy generation: 817 MWh/year or Php 5.6 Million/year➢ Estimated GHG avoidance: 367.71 tCO2/year

Solar: Solar Philippines Commercial Rooftop Projects, Inc.

Carbon Sequestered

1,488Trees grown in

1 year


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Solar: San Carlos Solar Energy Inc.


Carbon Sequestered

55,168 Trees grown in 1

year

22MW Solar Energy Plant located at San Carlos City, Negros Occidental➢ Est. Annual energy generation: 30,290 MWh/year or P293M/year➢ Est. GHG avoidance: 13,630 tCO2/year

Solar: Raslag Corp. (Nepomuceno Group)

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23MW Solar PV Power Plant located at Mexico, Pampanga

➢ Est. average energy generation: 33,887 MWh/year or P308M/year

➢ Est. GHG avoidance: 15,249 tCO2/year


Carbon Sequestered


1 year

Hydro: Power Plant in Mindanao

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Construction of 68.8 MW Run-of-River Hydro Power Plant in Mindanao.➢ Est. ave. energy generation: 350,027 MWh/year or P2B/year➢ Est. GHG avoidance: 161,756 tCO2/year


Carbon Sequestered


1 year

Wind: Northwind Power Development Corp.

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Phases I, II & III – 51 MW Wind Farm Expansion in Bangui, Ilocos Norte.➢ Est. average energy generation: 131,347 MWh/year

or P653M/year➢ Est. GHG avoidance: 59,128 tCO2/year


Carbon Sequestered

239,225Trees grown

in 1 year

Geothermal Power Plants in Visayas

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Rehabilitation of the 112.5MW and 192.5MW Geothermal Power Plants in Visayas.➢ Est. ave. energy generation: 2,219,300 MWh/year or P10.6B/year➢ Est. GHG avoidance: 899,118 tCO2/year


Carbon Sequestered

4.1 MTrees grown in

1 year

BPI Walks The Talk - EE

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Retrofit of 30-year old chillers of the BPI Head Office. ➢ Est. ave. energy savings: 990 MWh/year or ave. savings of P12M per year

since 2012.➢ Est. GHG avoidance: 431 tCO2/year


Carbon Sequestered

1,803Trees grown

in 1 year

2008-June 2017 Total Energy Savings & Production

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4,060

GWh of Electricity

2.8 M MT of CO2

emission reduced

6.6 Mbarrels of

oil consumed

602,748Passenger Vehicles

73.9 Mtrees

seedling grown

905,565Tons of waste


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SHARED VALUE

Compliance / Regulatory

Corporate Social Responsibility

Climate Resilience

Operational Efficiency

Profitability

PROFITABILTY with a PURPOSE

SUSTAINABILITY

Contribution to Environment Protection

Contribution to Community

InnovationEmployment

Winning Formula for the Private Sector


Turn your

Business

GREEN to GOLD


Don’t be left behind.

CONFIDENTIAL

Contact Us: 845-5855 / 845-5373 / 845-5360 / 845-5244 / 845-5935 / 845-5731E-mail us: [email protected]

BPI Sustainable Energy Finance

Thank you!

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