1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City

1. Experience and Challenges faced
in complying with EEC
May 31, 2022

2. 1. APMC’s EE&C Experience
2. Background on Ayala Corporation’s Net Zero Goal
3. How Institutions Can Help the End-users

3. Our Portfolio
Residential
Properties Malls
Office
Buildings
Estates
District
Cooling
Plants
Car Parks

4. Our Energy Profile
Units Composition
Ave Monthly Energy
Consumption (kWh)
%Share of Total
Consumption
Average Peak
Demand (in MW)
Residentials 140+ properties 3,683,692 7.10% 20.30
Malls/Retail 40+ malls & retail sites 27,421,597 52.83% 87.25
Offices 80+ office buildings 20,131,249 38.79% 31.96
Estates and Carparks
20+ estates
40+ carparks
708,974 1.37% 2.36
District Cooling 7 DCS 3,639,592 7.01% 7.81
TOTAL *51,901,412 **149.68
7.10%
52.83%
38.79%
1.37%
7.01%
Overall Annual Impact
622 GWh
of Energy Consumption
162M Liters
of Oil Equivalent
443k Tons
of CO2 Emissions
PHP 4.36B
of direct operating
expenses on energy
* Overall consumption 30% lower vs. pre-pandemic levels
** Total average peak demand 20% lower vs. pre-pandemic levels

5. Our Energy Performance
*Excludes buildings currently in start-up operations
10 Years of Energy Performance Improvement
Year-on-year Building Efficiency Index (kWh/m2/year)
Despite the growth in property
volume, our overall efficiency
index continue to improve year-
on-year.
Comparing it with the ASEAN
(ASEAN Center for Energy) and
the CBECS (US Commercial
Building Energy Consumption
Survey) building industry
benchmarks, our program is
successfully in keeping our
properties within the bounds of
efficiency.

6. Our Support to the Philippine Power Sector
33 of our biggest properties in terms of peak demand are
enrolled in the Interruptible Load Program (ILP) - a voluntary,
demand side management program that allows customers to
operate their generating sets & collectively reduce electricity
drawn from the grid during Red Alert status.
e.g., An excerpt of an announcement due to
“Red Alert” in energy supply last June 2021

7. Our 5-Point Strategy on Energy Efficiency
Top-Down
Approach
Strategic
Execution
Plan
Strategic
Procurement
(RES & ESCO)
Supporting
Government
Resiliency
Performance
& Results
Our program developed key initiatives
that contribute to the improvement of
our properties’ energy performance
through a 5-point strategy targeting
consumption reduction on a short,
medium, and long-term plan.
The programs involve the review and
implementation of strategic operations
adjustments, use of commercial energy
conservation technologies and research
on next-generation innovations.

8. Top-Down Approach
The Management is actively involved in the direction towards sustainable energy management and conservation.
This commitment form the Top management drills down to the organization ensuring a unified and consistent
effort in achieving energy performance improvement and minimizing the impact of our operation on the
environment.

9. Strategic Execution Plan

10. Implementation of Best Practices in Energy Efficiency & Conservation
First Wave Initiatives – Quick Wins (“the Low Hanging Fruits)
Strategic
Execution
Plan
Adjustment of AHU frequency
for periods of lower cooling
demand
Utility Demand
Adjustments
Utilization of Available
Power Supply Options
Utilization of Natural
Lighting and Ventilation
Utilization of vestibules to
reduce air infiltration

11. Applied Engineering Solutions for Energy Efficiency
Second Wave Initiatives – Engineering Intervention
Strategic
Execution
Plan
Upgrade to High/Premium
Efficiency Motors
Installation of Variable
Speed Drives for operation
of motors
Installation of Ozone
Generator for Condenser
Water Treatment
Use of Energy Efficient VVVF
Non-Hydraulic Elevators
Energy-efficient
Fenestration
Installation of On-site
Renewables
Prioritization of Centralized
HVAC operations for Complex
Commercial Developments
BMS and CMMS Systems for
Property Operations
Energy-efficient Chillers, Air
Side, and Unitary AC units
Utilization of thermal storage and
heat-exchanging (HEX) units

12. Strategic
Execution
Plan
Continuing Studies and R&D
Third Wave Initiatives – Cutting-edge Technologies
Oil-free Magnetic
Levitation Chillers
Nanotechnology
Solutions for HVAC
Operations
AI-assisted Automated
Energy Management
System
Improvements in
Enthalpy Wheels
Counter-flow cooling
tower design with energy
recovery
Real-time Chiller
Plant Manager
Zero Downtime Pipe
Freezing Repair
Technology
Zero Downtime Hot
Tapping Method
Next-Generation EC
Motors for AHU
Operation
Auto-balancing
Energy Valves
Development of Overall
EnMS Portfolio Manager
Chemical-free Water
Treatment Technology

13. Energy Management Process Consistency and Standardization
APMC is ISO 50001:2018 Certified
• The first property management company in the Philippines to be ISO 50001:2018
certified
• This is APMC’s fourth ISO certification along with its earlier attained ISO 9001:2015 for
Quality Management, ISO 14001:2015 for Environmental Management, and ISO
45001:2018 for Health and Safety Management

14. Recipient of Various Local and International
Awards, Citations, and Certifications
Energy Efficiency Excellence Awards
from the Department of Energy
ASEAN Energy Awards
from the ASEAN Center for Energy
International Business Awards (IBA)
Sheila Sheridan Awards for
Sustainable Facility Operations and Management
from the International Facilities Management Association (IFMA)
LEED Certification for Buildings
from the US Green Building Council (USGBC)

15. 1. APMC’s EE&C Experience
2. Background on Ayala Corporation’s Net Zero Goal
3. How Institutions Can Help the End-users

16. AC 2050 Net Zero Goal

17. Scopes 1, 2, and 3 Emissions

18. 1. APMC’s EE&C Experience
2. Background on Ayala Corporation’s Net Zero Goal
3. How Institutions Can Help the End-users

19. How Institutions Can Help End-Users
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications
Protection Against
“Fly by Night” Technologies

20. How Institutions Can Help End-Users
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications
• APMC’s internal Research and Development (R&D) Team
conducts internal technical & financial viability studies to
ensure technologies/products are worthy for investing
• OFI: Government having a “seal of approval” for novel
technologies and an inventor-to-end user matching
mechanism is highly encouraged, to further promote
innovation and lessen skepticisms in exploring new
technologies
Protection Against
“Fly by Night” Technologies
Protection Against
“Fly by Night” Technologies

21. How Institutions Can Help End-Users
• Before CREATE Act and EE&C Act, tax incentives for EE&C projects
are not well-known if not non-existent.
• DOE’s incentivization initiatives under DC 2021-05-11 and EE
Strategic Investments will greatly help end-users to avail BOI ITH –
enticing more establishments to invest in EE&C projects
• OFI: Specialized scheme for projects with lower investment cost
and/or lower energy savings yield
Incentivization Scheme
for EE&C Projects
Protection Against
“Fly by Night” Technologies
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications

22. How Institutions Can Help End-Users
• Small to medium CapEx projects have difficulty in obtaining private
financing. Larger financial institutions will be unwilling to consider
small projects (global commercial banks are generally not
interested in projects below USD 10M)
• OFI: Localized financing models for regional/local financing
institutions are highly encouraged
Required Minimum
Financing Amount
Protection Against
“Fly by Night” Technologies
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications

23. How Institutions Can Help End-Users
• The onslaught of the COVID-19 pandemic brought economic uncertainty and
dissuaded most principals to undergo in long-term financial engagements.
• OFI: An active role of government and financial institutions in advisory role to
help end-users in assessing risks involved in long-term engagement.
• As long-term deals are vulnerable to regulatory risks, government Is
encouraged to provide a supportive regulatory framework to bolster
confidence of financiers
Risk in Long-term
Financial Engagements
Protection Against
“Fly by Night” Technologies
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications

24. How Institutions Can Help End-Users
• OFI: Establishing a carbon trading mechanism, and along this a carbon pricing
instrument, will help the industries achieve emissions targets
• This can be further improved by harmonizing with the Renewable Energy
Market, as well as integrating RE generated by end-users
• The government is also recommended to provide grace period on the proposed
imposition of carbon tax
RE/Carbon Trading
Mechanisms
Protection Against
“Fly by Night” Technologies
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications

25. How Institutions Can Help End-Users
• Existing “green-certification” processes often incur hefty fees
• OFI: The government as the lead advocate in the national drive to
achieve national energy & sustainability targets, is highly encouraged
to provide a stringent state-initiated certification process to
acknowledge those who achieved carbon neutrality
State-initiated Green Certifications
Protection Against
“Fly by Night” Technologies
Incentivization
Scheme for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications

26. How Institutions Can Help End-Users
Fly by Night
Technologies
Minimal Incentivization
for EE&C Projects
Required Minimum
Financing Amount
Risk in Long-term
Financial Engagements
RE/Carbon Trading
Mechanisms
State-initiated Green
Certifications
• APMC’s internal Research
and Development (R&D)
Team conducts internal
technical & financial
viability studies to ensure
technologies/products are
worthy for investing
• OFI: Government having a
“seal of approval” for novel
technologies and an
inventor-to-end user
matching mechanism is
highly encouraged, to
further promote
innovation and lessen
skepticisms in exploring
new technologies
• Before CREATE Act and
EE&C Act, tax incentives for
EE&C projects are not well-
known if not non-existent.
• DOE’s incentivization
initiatives under DC 2021-
05-11 and EE Strategic
Investments will greatly
help end-users to avail BOI
ITH – enticing more
establishments to invest in
EE&C projects
• OFI: Specialized scheme for
projects with lower
investment cost and/or
lower energy savings yield
• Small to medium CapEx projects
have difficulty in obtaining
private financing. Larger financial
institutions will be unwilling to
consider small projects (global
commercial banks are generally
not interested in projects below
USD 10M)
• OFI: Localized financing models
for regional/local financing
institutions are highly
encouraged
• The onslaught of the COVID-19
pandemic brought economic
uncertainty and dissuaded most
principals to undergo in long-
term financial engagements.
• OFI: An active role of
government and financial
institutions in advisory role to
help end-users in assessing risks
involved in long-term
engagement.
• As long-term deals are
vulnerable to regulatory risks,
government Is encouraged to
provide a supportive regulatory
framework to bolster confidence
of financiers
• OFI: Establishing a carbon
trading mechanism, and
along this a carbon pricing
instrument, will help the
industries achieve
emissions targets
• This can be further
improved by harmonizing
with the Renewable
Energy Market, as well as
integrating RE generated
by end-users
• The government is also
recommended to provide
grace period on the
proposed imposition of
carbon tax
• Existing “green-certification”
processes often incur hefty
fees
• OFI: The government as the
lead advocate in the national
drive to achieve national
energy & sustainability
targets, is highly encouraged
to provide a stringent state-
initiated certification process
to acknowledge those who
achieved carbon neutrality

27. Thank you.