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TRANSCRIPT
CONFIDENTIAL
BPI Sustainable Energy FinanceSwitch Asia Conference
20 November 2014 | Shangri-La, EDSA
I. Philippine Economic & Energy Situation
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First bank in Southeast Asia; established in 1851
First Philippine bank with an investment upgradefrom both Fitch Rating (March 2013) and Moody’sInvestor Service (October 2013)
• Total assets: US$ 28.3B• Market capitalization: US$ 7.1B• Net income: US$ 442.8M
BPI in 2013
• Branches: 825• ATMs: 2,507
• Full service Universal Bank: Corporate and Investment Banking SME Lending Consumer Lending Asset Management and Trust Private Banking
Bank of the Philippine Islands
BPI Sustainable Energy FinanceSwitch Asia Conference
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GDP Growth
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0
1
2
3
4
5
6
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2012 Actual 2013 Actual 2014 Estimate 2015 Forecast
Indonesia Malaysia Thailand Vietnam Philippines
BPI Sustainable Energy FinanceSwitch Asia Conference
Philippine Energy Situation
• Philippines’ electricity costs one of the highest in Asia and price continues to rise
• Energy deficiency in remote areas, overall Philippine energy supply shortfall, unreliable supply, rotating brown-outs
• Heavy dependence on imported fossil fuels
• ASEAN integration and the need to be more competitive
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Phil $ 0.25
Japan $ 0.24
Sing$ 0.23 Thai
$ 0.15HK
$ 0.13Mal
$ 0.10China$ 0.09
Ind$ 0.05
Electricity Rates in Selected Countries(US $ cents per kilowatt hour, 2013)
Source: Manila Electric Company
BPI Sustainable Energy FinanceSwitch Asia Conference
The new normal
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Business Risk Assessment and Management of Climate Change Impacts by WWF and BPI Foundation
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16 Cities
1. Cebu
2. Davao
3. Baguio
4. Iloilo
5. Cagayan de Oro
6. Zamboanga
7. Laoag
8. Dagupan
9. Angeles
10.Tacloban
11.Naga
12.Bacolod
13.Puerto Princesa
14.Butuan
15.General Santos
16.Santiago
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Coal, 32.1%
Hydro, 20.3%
Oil based, 19.3%
Natural Gas, 16.5%
Geothermal, 10.8%
Biomass, 0.7%
Solar, 0.6%
Wind, 0.2%
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Note: Generation data includes grid connected, embedded, and off-grid generators
Power Generation Mix 2014
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II. Sustainable Energy Finance (SEF) Program
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BPI Sustainable Energy Finance (SEF) Team can help you…
Identify opportunities for energy savings
Choose appropriate technologies for your energy efficiency or renewable energy projects
Calculate potential energy cost savings and evaluate project feasibility studies through BPI’s FREE walkthrough audit
Link up with technology vendors, suppliers and consultants
Access financing for working capital, capital expenditure and lease arrangements
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Energy Efficiency
✓ reduce energy use while achieving similar output
• Heating, ventilation and cooling (HVAC)
• Building Management System (BMS)
• Air compression system
• Electrical systems including lighting
• Business expansion involving purchase or upgrade to a more energy efficient equipment
Renewable Energy
✓ generate energy from naturally replenished sources
• Biomass/Biogas
• Geothermal Power
• Solar Power
• Hydro Power
• Ocean Power
• Wind Power
Climate Finance
✓ finance climate-related projects
• Tunnel ventilated piggery/poultry houses
• Manufacturing/Trade of EE/RE products
• Water supply with filtration technology
• Resource efficiency
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Summary of SEF projects financed by BPI
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Positive Impact of BPI SEF Program1. Lower energy costs; improve earnings of clients/borrowers
2. Clients of SEF Program primarily SMEs
SME sector underserved by banks
Robust SME critical to inclusive growth
3. Improved disaster preparedness of clients
Upgraded and more sturdy/efficient facilities
4. Improved awareness - new technology for operational efficiencies, gap between supply and demand, options for reliable and clean energy
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Walk thru Audit
CebuDavao
Makati
Sustainable Energy Finance Client ForaTechnical Consultation
27 educational forums;
2500 SMEs
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MSMEs are not credit worthy
Mindset of MSMEs: Not to buy equipment until old one breaks down (cost sensitive)
EE/RE projects are not core business
SEF Program: Challenges and Steps taken
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BPI offered franchise loans to franchise owners
Free walkthrough energy audits (financing with technical advice) & exposure to best practices
Exposure to success stories via advertorials/testimonials/fora
Challenge Steps Taken
Philippines MSMEs:- 99.6% of registered Philippine companies - 63% of labor force- 36% of manufacturing output
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Lack of education and exposure of MSMEs to new technologies and banking innovations and their impact
Problems with new technologies from inexperienced providers or equipment suppliers
Well-designed, well-funded & sustainable educational campaign (forums, ads and newspaper articles) to orient MSMEs on latest technologies, new approaches as well as banking solutions and their impact to business, the community and the environment
Standardization of criteria for accrediting small and large suppliers
Challenges Steps Taken
SEF Program: Challenges and Steps taken
Quezon City
CebuSEF BotthECCP Sponsorship SEF booth CDO
MakatiClarkSEF Forum Davao
SEF Program: Challenges and Steps taken
BPI Sustainable Energy FinanceSwitch Asia Conference
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Regulatory and financial environment need to be more conducive for MSMEs’ green projects
Recommendation: Incentives for MSME green projects: • EE tax incentives• Fast lane for MSME green project certification• MSME EE & RE project recognition
Solutions:• Accessible bank financing for MSMEs: BPI SEF • Active participation in Dept. of Energy (DOE),
ADB, ACEF, ECCP, PFAN initiatives aimed at improving the regulatory environment
Challenges Recommendations / Solutions
FAST LANE
III. SEF SUCCESS STORIES
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Jeco Development Corporation
First Green Resort located in Palawan Island near the New 7 Wonders of Nature – Puerto Princesa Underground River
Water capture and recycling with waste management and rain harvesting system, efficient chillers
Solar and wind power installation which reduces 20% of its fuel cost Average energy savings: 642 Mwh/year or Php 5M /year Estimated GHG avoidance: 289 tCO2/year
Energy Efficient chillers with non-CFC features
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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
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Venvi Agro-Industrial Ventures Inc.
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22MW Solar Energy Plant located at San Carlos City, Negros Occidental Annual energy generation: 30,290.07 MWh/year or Php 293 Million/year Estimated GHG avoidance: 13,630.62 tCO2/year
San Carlos Solar Energy Inc.
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BPI Walks the Talk
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BPI Walks The TalkI. First Initiative: Chiller Replacement
BPI Head Office Case
• Building more than 30 years old
• At the end of year 2010, 3 chillers replaced
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BPI Head Office Building’s Electricity Consumption
Year
Energy Consumption
in kilowatt hours
Annual Gross Savings (Actual)
Annual Gross Savings
(Guaranteed)
2011 – 2012 1,819,156 10,316,211.72 7,200,0002012 – 2013 1,812,437 9,909,046.93 7,200,0002013 – 2014 1,784,085 9,014,677.63 7,200,000
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BPI Walks The Talk
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II. Second Initiative: Solarization of BPI Branches• 4.9 kWp grid tied system for Ayala Extension Branch
• 5.1kWp grid tied system for BPI Cainta Junction Branch
Target to install solar panels to 31 BPI branches
BPI Sustainable Energy FinanceSwitch Asia Conference
Don’t forego your chance to save on energy costs or produce renewable
energy just because you lack financing.
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BPI is ready to help you
DON’T BE LEFT BEHIND
Thank you!For more information, please contact the Sustainable Energy Finance Team at:
Tel. Nos.: (02) 845-5731 / (02) 845-5935 / (02) 845-5244 / (02) 845-5809
(02) 845-5360 / (02) 845-5373 / (02) 816-9063
Email: [email protected]
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