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 in developing EE projects in
building sector – investment opportunities,
prospects and challenges
May 31, 2022

2. EconoServ Solutions International Inc.
(since Jun 2015)
• An Energy Service Company (ESCO) that develops, installs, and finances projects designed to improve
the energy efficiency and maintenance costs for facilities over a period of time.
• An Energy Solutions Provider employing a wide array of cost-effective measures including high
efficiency lighting, high efficiency HVAC, high efficient motors, variable speed drives, BMS, etc.
• A Project Management Service Provider that develops and execute green building-driven strategic
planning from Master Planning on any Development, to Feasibility Study, to EPC implementation
• ESCO Accredited/Certified by DOE
• Founding member of Philippine Energy Efficiency Alliance (PE2)
• Recognized as Green Building advocate by
• Visit our website at www.econoservsoln.com

3. Maintenance
Costs
Energy
Costs Energy
Costs
Maintenance
Costs
Savings
Repay
Improvements
& ESCO
Before Improvements
After Improvements

4. Efficiency-as-a-Service (EaaS) is….
• A pay-for-performance, off-balance sheet financing solution that allows customers to
implement energy and water efficiency projects with no upfront capital expenditure.
(Better Buildings Initiative, US DOE)
• Performance based outsourcing service…
• EaaS is expected to grow 46.3% globally over the next 5 years. - DLL

5. Fixed repayment
Performance
Guarantee
Shared Savings Model Guaranteed Savings Model
Fixed repayment
Performance
Guarantee
Credit risk
Performance risk
CLIENT
ESCO Banks/FIs
CLIENT
Banks/FIs
ESCO
EaaS ESCO Schemes
Performance risk
Performance/Credit risk

6. EaaS Process/Methodology
End-User Engagement
• Key Decision Maker
• Access to Site Information
• Concept presentation
Preliminary Assessment
• Desktop Analysis
• Walkthrough Audit by EconoServ
MOA for Detailed Energy
Audit
• Exclusivity with Client and
presentation of fees to get their
commitment
Detailed Energy Audit (DEA)
• 4 weeks on-site data gathering &
processing
• Investment Grade Audit by
EconoServ
• Detailed list of ECMs
• Draft Term Sheet
Submission of Term Sheet
with DEA results
• Secure client’s endorsement of
technical proposal
• Finalize Financial Model
Draft of EEPC
• Prepare, Negotiate and Sign Energy
Efficiency Performance Contract
(EEPC)
Implementation
• Engage with Vendors and Contractors
• Project Management by EconoServ
• Procurement (including tender as
needed)
• Estimated 10-12 months
Operation, Measurement &
Verification
• Commission and Operate ECMs
• Confirm savings
• Collect share of savings
• Identify and Fix Problems

7. Investment Opportunities/Prospects
Note: Estimates by Alex Ablaza, Aug 2021
GWh Savings
Commercial Bldg 225,626
Public Bldg 28,909
Total 254,535
PH EE Savings Potential, 2021 - 2040
PH EE Investments, 2021 - 2040
Php
Commercial Bldg 1,208 Billion
Public Bldg 252 Billion
Total 1,460 Billion

8. Challenges
Process Steps Specific ESCO Challenges
Initial Presentation RA11285 Compliance? 2022 for EA; wait for next steps like EUIs, etc.
Pandemic recovery vs energy savings
EEPC/BOT from savings? Too good to be true
EA budget allocation/bidding/approval?
NDA approval
Walkthru/Prelim EA Available site info like as-built plans
MOA for EA MOA approval/minimal fee for Level 2 EA?
ESCO: Working capital for FREE Level 2 EAs?
Level 2 Energy Audit Technology support?
Payback issues < 3 yrs
RES low rates?
EEPC Outsourcing vs inhouse? Internal funds vs BOT?
ESCO: Collateral vs project finance? Equity investor?
ESCO: 3-year waiting for decision…voluntary (pre-RA11285)

9. Thank you.
Ray Marquez
raymarquez@econoservsoln.com