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[ MEMORANDUM CIRCULAR NO. 2018-05, March 20, 2018 ]


Adopted: 26 February 2018
Date Filed: 20 March 2018

Please be informed that the Board, in its meeting of 21 February 2018, adopted the following resolution:

Resolution No. 07-02, Series of 2018

RESOLVED,  that  the  following  Energy  Efficiency  Guidelines  BE  APPROVED AND CONFIRMED:
  1. Energy   Efficiency    (EE)   projects   for   existing   plants   or   facilities   for manufacturing,  agri-processing  and  agri-support  service  activities  listed  in the 2017 IPP that will involve installation of new equipment, system or component that are listed in Table 1 may qualify for registration.

  2. The income tax holiday (ITH) incentive shall be equivalent to 30% of the cost of the capital equipment.

  3. The  entity  to  be  registered  may  be  the  owner  of  the  plant  or  facility  or another entity investing on the project.

  4. The registered  entity shall be entitled  to ITH for a period of four (4) years which shall be reckoned one (1) year after the installation of the equipment, system or component.

  5. For  an  Energy  Service  Company  (ESCO)  providing  the  energy  service, application  for  registration  must  be  accompanied  by  a  Service  Contract between the ESCO and the owner of the facility.

  6. Application  for registration  must be accompanied  by an endorsement  from the Department of Energy (DOE).

  7. The list of energy efficient equipment shall be subject to a quarterly review.
Table 1. List of Energy Efficiency Equipment

Energy Efficient Equipment


Categorie s

Lis t of S pecific T echnology

Heating Ventilation Air
Conditioning ( HVAC) upgrades

1 . S ol ar Ther m al AC S yste m s
2 . Inverter Type Ai r-con S yste m

Motor , fans and pumps

3 . Integrated vari able speed m otor s 4 . Switched-reluctance drives
5 . DC drives


6 . Compressor Chillers with variable- frequency drives

  that  the  direction  of  the  following  Energy  Efficient Equipment BE APPROVED AND CONFIRMED:
I.     Heating Ventilation Air Conditioning (HVAC) upgrades (e.g., inverter types)
1.  Solar Thermal AC Systems – Active solar cooling uses solar thermal collectors to provide solar energy to thermally driven chillers (usually adsorption   or  absorption   chillers).   Solar   energy   heats   a  fluid  that provides heat to the generator of an absorption chiller and its recirculated back  to  the  collectors.  The  heat  provided  to  the  generator  drives  a cooling cycle that produces chilled water. The chilled water produced is used for large commercial and industrial cooling.

Solar thermal  can be used to efficiently  cool in the summer,  and also heat domestic  hot water and buildings  in the winter.  Single,  double  or triple  iterative  absorption  cooling  cycles  are  used  in  different  solar- thermal-cooling system designs. The more cycles, the more efficient they are.

2.   Inverter  Type  Air-con  System  –  Inverter  air-con  helps  to  control  the speed  of the compressor  motor,  thereby  changing  the temperature  as per  requirement.  It  can  detect  sudden  fluctuation  in  the  room temperature,  which leads the compressor  to slow down or work faster. As   soon   as   the   room   temperature   reaches   the   set   temperature, compressor  slows  down,  thereby  maintaining  a  constant  temperature. This highly helps to save energy. Generally, inverter air-con’s need 30-
50% less electricity than non-inverter air conditioner.
II.     Motor, fans and pumps
  1. Integrated  variable  speed  motors  –  These  can  lead  to  greater  cost savings  over  the  life  of  the  motor.  In  terms  of  efficiency,  integrated variable speed motors have the same energy saving benefits as a non- integrated motor and VSD.

  2. Switched-reluctance drives – These machines consist of a switched- reluctance motor and dedicated electronic controller. Their performance is similar to that of a conventional induction motor and VSD. In addition, they  are  capable  of  every  high-speed  operation  (up  to  100,000rpm). These devices have an energy efficiency performance similar to, and in some cases exceeding, that of an induction motor with a VSD.

  3. DC  drives  –  These  machines  consist  of  a  DC  motor  and  dedicated electronic controller. DC motors/drives operate from a different type of electrical supply than AC motors/drives and as such have different characteristics. Efficiency-wise,  the performance  of DC drives is similar to that of a conventional induction motor with a VSD. DC drives were the main form of variable speed control before the advent of VSDs. They are still in use today  in specialist  applications  where  high  starting  torques and  variable  speeds  are  required,  such  as  pulsating  loads,  shears, bending rolls, plunger pumps, conveyors, elevators and crushers.
III.   Chillers

Compressor Chillers with variable-frequency  drives – centrifugal chillers with a variable-frequency  drive offer high efficiency over a wide range of cooling loads. High-efficiency  chillers often can reduce cooling energy requirements by 30% to 50% annually.
RESOLVED FINALLY, that the Energy Efficiency Guidelines shall take effect immediately upon publication in a newspaper of general circulation, and three (3) certified copies thereof shall be filed with the Office of the National Administrative Register   (ONAR),   University   of  the  Philippines   (UP)  Law  Center,  Diliman, Quezon  City  pursuant  to Presidential  Memorandum  Circular  No.  11  dated  09 October 1992.

26 February 2018, Makati, Philippines.

By the Authority of the Board:

DTI Undersecretary  and BOI Managing Head
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