August 12, 2024
Tacloban City—More businesses are turning to the Green Energy Option Program (GEOP) as a powerful mechanism to cut power costs while minimizing their environmental impact.
Establishments like Seda Nuvali and Glacier Megafridge, Inc. have shared their success stories during the first two Choosing Renewables conferences, inspiring other businesses to adopt 100% renewable energy through GEOP.
The second leg of the Choosing Renewables conference series, held in Tacloban City last 07-08 August 2024, brought together business entities, electric cooperatives, distribution utilities, and local government units to promote climate-friendly energy solutions. This event is organized by the Department of Energy (DOE), the Institute for Climate and Sustainable Cities (ICSC), and The Climate Reality Project Philippines.
Achieving net-zero target with GEOP
Launched in 2021, GEOP empowers businesses to choose renewable energy as their power source without requiring additional infrastructure. Consumers with an average monthly peak demand of 100 kilowatts or more can opt to purchase renewable electricity from a licensed supplier instead of relying solely on their distribution utility’s supply.
Glacier Megafridge Inc. and Seda Nuvali highlighted the numerous benefits of switching to renewable energy through GEOP.
“We recorded about 10% energy expense savings compared to our previous year, and that rounds up to 14,470,000 kilograms of CO2 avoided annually. For reference, we consume around 20.9 million kilowatt hours yearly. Essentially, that pushed our group to support this [GEOP], not just in terms of savings, but going with the vision and mission of providing sustainability in the country’s food supply chain,” Aaron John Medina, Head of Business Development and Corporate Development at the Glacier Megafridge Inc., cited.
Glacier Megafridge Inc., a leader in cold-chain storage and logistics, powered its five (5) energy-intensive branches in Luzon and Visayas entirely with 100% renewable energy in 2023, with Glacier Samar as the sole GEOP switcher in Leyte.
Seda Nuvali, featured during the first Choosing Renewables conference in Laguna on 31 July 2024, expressed a similar motivation for switching to GEOP.
“The advocacy of our mother company is to target zero carbon by 2050, that is why sustainability is part of our mandate,” Dennis Gutierrez, Seda Nuvali’s Engineering Department Head, said.
This strategic move resulted in a remarkable 50% to 60% reduction in electricity costs, allowing Seda Nuvali to reinvest these savings into enhancing its hotel facilities and services. Impressed by these results, the hotel is currently in the process of transitioning its second tower to GEOP.
Cheaper generation rates through GEOP
Alberto Dalusung III, Energy Transition Adviser at ICSC, emphasized that sourcing 100% renewable energy through GEOP eliminates expensive import fees, volatile coal prices, and value-added tax (VAT) fees from the consumer’s monthly bill, providing consumers with greater price stability.
Glacier Megafridge, Inc. and Seda Nuvali affirmed that GEOP enabled them to negotiate cheaper generation rates with retail electricity suppliers.
“You have the flexibility to really go into the market and find if there are better services or better rates compared to being in a captive market where you have no choice but to contract with your distribution utility,” Medina explained.
Enhancing the implementation process of GEOP
The second day of Choosing Renewables provided a platform for stakeholders to discuss potential improvements to the GEOP implementation rules.
Engr. Jordan Ballaran, Senior Science Research Specialist at the Renewable Energy Management Bureau (REMB) of the DOE, identified lowering the energy requirement threshold, granting renewable energy certification to end-users, and allowing Wholesale Electricity Spot Market (WESM) supply for replacement power as possible amendments to the program.
“We recognize that the effective and successful implementation of the different policies issued by the Department of Energy lies not only in the DOE alone but in the stakeholders. With the right policies and strategies and the collective efforts and commitment of all stakeholders, achieving our renewable energy goals is far from elusive,” Pangilinan emphasized.
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