August 20, 2024
Bacolod City—Renewable energy suppliers Aboitiz Power, Energy Development Corporation (EDC), and ACEN Corporation pledged their commitment to accelerating the country’s shift to clean energy by supporting more consumer access to renewable energy through the Department of Energy’s (DOE) Green Energy Option Program (GEOP).
GEOP allows consumers with an average monthly peak demand of 100 kW to directly source 100% renewable energy from suppliers at a more competitive cost.
The third leg of the Choosing Renewables conference series in Bacolod City on 14-15 August 2024 organized an information campaign on various voluntary renewable energy programs and a public consultation on draft GEOP policy improvements. The event was organized by the DOE, The Climate Reality Project Philippines, and the Institute for Climate and Sustainable Cities (ICSC).More businesses are turning to the Green Energy Option Program (GEOP) as a powerful mechanism to cut power costs while minimizing their environmental impact.
RES found more opportunities with GEOP
“With the Green Energy Option Program, there will be more RE (renewable energy) plants to be built on the grid,” said Engr. Sheila C. Mina, ACEN’s Vice President and Head of Account Management for Renewable Energy Solutions.
GEOP is a crucial stepping stone towards the Philippines’ goal of generating 35% of its power from renewable sources by 2030 and 50% by 2040. As GEOP gains more interest and demand, it will spur investments in renewable energy infrastructure, creating a robust ecosystem that benefits both consumers and developers. The program also empowers consumers to make informed choices about their energy consumption, driving market competition and innovation.
GEOP also offers significant opportunities for renewable energy suppliers. Aboitiz, EDC, and ACEN have expressed enthusiasm for the program, highlighting its potential to expand their customer base and market reach.
“GEOP is really a good program. First of all, it’s a very proactive program, so it enables us renewable energy developers to go straight to customers,” said Marvin Kenneth S. Bailon, EDC’s Vice President and Head of Business Development.
GEOP gains support from renewable energy suppliers despite challenges
The Climate Reality Project Philippines’ RE Energize PH Survey revealed that limited supply hinders potential switchers from joining GEOP. Aboitiz, EDC, and ACEN echoed this concern, noting that the current renewable energy market capacity may not fully meet the growing demand generated by the program.
Moreover, GEOP’s replacement power requirement of 100% renewable energy during main supply outages limits other renewable energy suppliers from registering under the program. The program currently has only 19 registered suppliers, most of whom have already been fully contracted.
“Most renewable energy plants that can provide 100% of the customer requirements are usually contracted with distribution utilities and some larger off-takers. So the problem is that the GEOP now would have to compete, when it comes to size, with other off-takers for whatever is left in the portfolio,” explained John Davis Mangubat, Aboitiz Power’s Vice President of Retail Operations and Portfolio Management.
Improving RES experience in GEOP
A core objective of the Choosing Renewables conference series has been to solicit insights from renewable energy suppliers on potential enhancements to GEOP.
One key recommendation from these suppliers is to relax the replacement power requirement, allowing blended power sources to provide greater flexibility in contracting with consumers.
“One hundred percent (100%) requirement may not need to be assessed per interval basis. But maybe that’s something that we can check, maybe a year in volume or a month in volume, so that the requirement will be eased,” Mangubat proposed.
Meanwhile, the DOE suggested holding a special auction for GEOP suppliers and end-users, as well as setting up a supply pool where suppliers can combine capacity to meet end-users’ power demands and allowing for more competitive rates for consumers. These were widely supported by all the GEOP suppliers.
The panel discussion also hinted at the possibility of simplifying the registration and switching process for GEOP. While advocating for these changes, renewable energy suppliers reaffirmed their commitment to providing comprehensive support to customers throughout the process.
“We should be here to guide [consumers] every step. We’re here to support you. Let us be able to guide you in that seemingly complicated process. But if you break it down into the components, it shouldn’t be that complicated,” Bailon stated.
DOE Assistant Secretary Capongcol assured that recommendations raised by renewable energy suppliers and other key stakeholders during the conference will be thoroughly studied for possible inclusion in the draft GEOP rule amendments.
Stakeholders are invited to submit their comments and recommendations on the proposed revised GEOP rules by 30 August 2024. Access the draft and comment template at bit.ly/geoprules.
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