Technology Transfer for Energy Management (TTEM) Project
Policy measure

In 1986, the Philippine government implemented the Technology Transfer for Energy Management Project (TTEM) with a USD5 million grant from the US Agency for International Development (USAID). The project aims to introduce technologies in industrial plants and commercial buildings that have proven successful in other countries, but are not widely used in the Philippines (APEC-ESIS, 1998) through a programme of technical assistance and technology demonstrations.


One of the two major components of the TTEM project are “Technology Demonstrations, partly funded by the Demonstration Loan Fund, which will help to overcome the barriers to the adoption of technologies.” (USAID, 1996)

Implementation

Demonstrations had to be economically justifiable and realistically applied with a high degree of replicability, thus offering a large national impact on energy efficiency (USAID, 1996).

Challenges
No identified challenges.
Outcomes

According to USAID (1996), “technology demonstrations were partially successful [as] eleven of the 17 participating companies achieved a financial rate of return greater than 12 percent, and for 8, the return was greater than 28 percent. In several instances, however, the technologies did not appear to have strong replication potential”.


Two examples of successful demonstration projects in the industrial sector are (USAID, 1996):

  • “Armco-Marsteel Alloy Corporation (now GST Industries) invested $218,500 for an “oxy-fuel” scrap metal melting system expected to improve furnace efficiency by 12 percent and increase steel production by 15 percent. The estimated payback period was 3.9 years. However, because of technical problems associated with poor fuel oil quality and adverse market conditions that hampered the firm’s ability to purchase spare parts for the burner, the firm did not maintain and operate the system beyond one and a half years. As a result, the financial rate of return was negative, and the technology has not spread.

  • The Republic Cement Company invested $285,200 to install two two-stage expanded and improved cyclone units for raw cement preheating. Production increased by 5–10 percent. Energy efficiency improved, with a payback period of about 2.4 years and a financial rate of return of 28 percent. At least two other dry process cement plants have adopted a similar technology, and it’s likely other cement factories (though there are relatively few in the country) will follow suit.”

References

USAID (US Agency for International Development), 1996. Energy Conservation in the Philippines. Washington, DC. Available at: www.usaid.gov/pubs/usaid_eval/pdf_docs/pnaby206.pdf.