Japanese-funded energy conservation
and management project for SMEs 

The Philippine Council for Industry and Energy Research and Development led the implementation of a Japanese government-funded project on energy conservation and management of small and medium-scale enterprises in the food, and iron and steel industries.  Energy efficiency for SMEs is one of PCIERD priority programs.

PCIERD along with Philippine Iron and Steel Institute, Philippine Energy Conservation Center, Inc., and Philippine Food Exporters proposed the project called “Technology Transfer for Energy Management Capacity-Building Program for the Philippine Food and Iron & Steel Industry SMEs” to the Japan External Trade Organization for funding support.  The project is part of the Green Aid Plan of the Government of Japan, which assists self-help efforts of developing countries like the Philippines to implement steps to deal with problems related to energy and environment. 

The industrial sector particularly SMEs suffers the effects of the high price of energy due to recent sharp hikes and shortages of oil-based fuel.  Economic instability due to foreign exchange fluctuation also affects business operations.  Despite general awareness of opportunities to reduce energy consumption in the industry, progress in implementation is slow partly for lack of information on energy management and conservation methods.

Realizing the need to create technological awareness on current energy conservation and management practices in the local food, and iron and steel industries, proponents designed the project to include training under Japanese experts and a visit to their plants. Plant visits provided opportunity for participating Filipino experts to identify energy-efficient technologies that could be adopted by local industries.

Another major project component is the dispatch of Japanese experts who conducted an energy audit together with DOST energy conservation experts team, which audited 19 food factories in Cordillera Administrative Region, National Capital Region, Bicol, and Central Visayas Regions, and four iron and steel factories in NCR and Cebu.

The audit identified areas for reducing energy consumption and possible energy efficient technology intervention in plant operations.  Energy conservation and management strategies were prepared for specific plants to include potential process improvement, energy conservation program, and list of technological options.

Among the food factories audited, Guaranfood Manufacturing, Mix Plant, Inc. and Moondish Food Corp. showed positive results reporting major improvements in plant efficiency. Significant savings was also realized after implementing improvements suggested by the experts.

Energy conservation measures implemented by the SMEs included application of insulation materials, recovery of condensate steam, modification of equipment and process maximization, implementation of preventive maintenance, product re-classification, improvement in lighting fixtures, and promoting employee awareness on the importance of practicing energy conservation and management.  Local skills were also enhanced including ability to do energy audit.

In the end, participating companies recognized the significance of energy conservation and management, which is evident in their new initiatives to set-up their own energy conservation targets.  They also created energy manager and auditor positions and discussion of energy conservation is included in management meetings.

But some SMEs lack the funds to install energy saving equipment, a major constraint in sustaining the program.

 PCIERD will continue to monitor the SMEs implementing the energy saving measures and extend the project to more SME factories.  Along this line, a similar project entitled “Energy Conservation and Management Capacity Building for the SMEs” is being considered for implementation.  PCIERD will fund the proposed project while DOST's Industrial Technology Development Institute, and Metals Industry Research and Development Center will be the implementing agencies.