Quezon City–Businesses remain unaware of the Green Energy Option Program (GEOP), but expressed tremendous interest to participate in the program to generate savings from cheaper electricity costs and improve corporate governance and portfolio on sustainability.

These findings emerged from the survey conducted by The Climate Reality Project Philippines and SUSTAINARUMBLE!, which assessed the level of awareness and needs of over 400 businesses and companies to participate in GEOP. The summary report of the survey was launched during the “REalize 2023: Enabling the Just Energy Transition towards Inclusive, Resilient, and Sustainable Development” on 28 November 2023 held in Makati City and online. 

Businesses are aware that they source power from expensive fossil fuels, mostly coal, but feel constrained with the limited option to switch to 100% renewable energy, the survey also found.

Role of GEOP in the Clean Energy Scenario

The Department of Energy (DOE), through the National Renewable Energy Program (NREP) 2020-2040, aspires to increase the share of renewable energy in the country’s power generation mix to 35% by 2030 and 50% by 2040.

Department of Energy Assistant Secretary Mylene Capongcol placed emphasis on GEOP as one of the major energy policy mechanisms to support this goal. Engr. Arjon Valencia, Manager of Corporate Strategy and Communications and Lead for RE Initiatives of the Independent Electricity Market Operator of the Philippines (IEMOP), meanwhile explained that “GEOP provides end-users the option to choose renewable energy as their source of power.” IEMOP serves as the Central Registration Body that oversees the registration and switching process of GEOP. 

Since its launch in late 2021, GEOP has 265 end-users participating in the program, among which is Linden Suites, a hotel based in Ortigas.

“Since we switched [to GEOP] in March 2022, we have saved approximately 7.2 million pesos. That’s roughly eight to ten percent savings in terms of electricity. Not to mention, in terms of revenue, we were able to attract a number of travelers who are environmentally conscious. So when they ask, what are your green initiatives? We tell them that we are under GEOP. That’s one of the selling points of the hotel,” Maria Celeste Romualdo, the General Manager of Linden Suites, shared. 

Many businesses however lack awareness about the program, as revealed by the survey, noting also that businesses assume that solar technology installation is the only route available for energy consumers to switch to 100% renewable energy. 

“This means that more efforts to raise awareness about GEOP needs to be done, especially for small and medium enterprises, who comprise the majority of businesses in the Philippines that would also want to participate in GEOP,” said Jonas Marie Dumdum, the Co-Founder of SUSTAINARUMBLE!. 

The report urged the government and IEMOP to develop knowledge products and platforms and conduct information campaigns to increase participation from end-users, as well as renewable energy suppliers (only 17, to date).

Roadblocks and Recommendations 

Issues and challenges to participating in GEOP also emerged from the study. Respondents cited difficulty in reaching the minimum threshold of 100kW average peak demand for the past 12 months, the stringent process and requirements in applying for GEOP, and concerns on supply availability and reliability. 

Respondents, however, also recognized that participating in GEOP would enable them to earn savings, support renewable energy, and increase their portfolio on sustainability.

Among the recommendations in the study include holding dialogues on lowering the threshold, setting aggregation guidelines, streamlining the process and requirements, and conducting information campaigns.

“Achieving the clean energy scenario in the Philippines demands the active involvement of key government agencies and industries in crafting and enacting a stronger roadmap where GEOP takes more prominence as a viable economic pathway towards 100% renewable energy,” said Nazrin Castro, Branch Manager of The Climate Reality Project Philippines. 

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