September 3, 2024
Cagayan de Oro City—The Department of Energy (DOE) is prioritizing end-user aggregation and alternative replacement power options as key elements in the revised Green Energy Option Program (GEOP) rules. This was presented during the Choosing Renewables Conference series in Laguna, Leyte, Bacolod, and Cagayan de Oro last July and August 2024, aimed at addressing critical challenges faced by GEOP end-users and suppliers.
The four-part series, organized by the DOE in collaboration with The Climate Reality Project Philippines and the Institute for Climate and Sustainable Cities (ICSC), served as both an information campaign and a public consultation for GEOP among key energy stakeholders.
Perceived challenges in GEOP
GEOP, under Republic Act No. 9513 or the Renewable Energy Act of 2008, allows entities with an average monthly peak demand of 100 kilowatts to source 100% renewable energy without upfront cost.
Henrey Donguines, Senior Technical Manager of PLDT Inc., graced the event to share how GEOP accelerated the company’s greenhouse gas emission roadmap by powering its three (3) site locations with 100% renewable energy. PLDT has six (6) upcoming sites in Mindanao to be powered by renewable energy under GEOP.
Despite its benefits, Climate Reality Philippines’ RE Energize PH Survey Report identified several obstacles preventing wider participation in GEOP. Among these challenges are difficulties in meeting the energy requirement threshold and a limited supply capacity within GEOP.
“GEOP is actually a continuing program. We are committed to continuously improving and enhancing our guidelines to ensure that consumers will get the best price and services,” DOE Assistant Secretary Mylene Capongcol said.
Expanding consumer participation in GEOP
The DOE’s proposed GEOP rule revisions include new guidelines for end-user aggregation, which would allow entities with an average peak demand below 100 kilowatts to participate. Entities that do not meet the energy threshold but are located within certain boundaries, such as subdivisions, villages, economic zones, business districts, can aggregate to meet the current peak demand threshold.
“In public economic zones, the Philippine Economic Zone Authority (PEZA) is the distribution utility. We are the one contracting for their supply of electric power. Ang unang iniisip ng PEZA is how we can source the cheapest power. So ‘yung na-contract before is majority coal. ‘Yung mga public economic zones, nagde-demand on how we can source renewable energy,” Melanie Papa, Planning Officer IV of PEZA, explained.
The proposed new guidelines empower businesses in economic zones to harness GEOP and access renewable energy, thereby enabling them to meet their parent company’s sustainability goals and net-zero targets.
Increasing supplier participation in GEOP
Major players in the energy sector, including Aboitiz Power Corporation, ACEN Corporation, and First Gen Energy Solutions Inc., have expressed support for GEOP despite some implementation challenges.
“Because of GEOP, we have increased our customer base starting from these eco-conscious consumers to the big corporations with a common goal towards sustainability,” Engr. Patrick Pondevida, Senior Account Manager of ACEN Corporation, said.
Gian Karla Canales Gutierrez, Senior Manager for Power Economics–Industry and Regulatory Affairs of First Gen Energy Solutions Inc., lauded the Choosing Renewables’ initiative to tackle the pain points in the GEOP process.
“Perhaps there can be some relaxations needed to be done in the mechanism by which we reconcile the delivery of renewable energy to our consumers. So right now, we see that the solution is to be open and more flexible when it comes to how we deliver the power,” John Davis Mangubat, Vice President of Retail Operations and Portfolio Management at Aboitiz Power Corporation, added.
To address the demands of renewable energy suppliers for greater flexibility, the proposed GEOP rule amendments introduce alternative power replacement options that would guarantee adequate supply of electricity to end-users. This move aims to attract additional players in GEOP, which currently has only 19 registered renewable energy suppliers.
The DOE is also exploring the creation of a pool where renewable energy suppliers and developers can collaborate to meet the demands of eligible customers, potentially increasing supply capacity and fostering more competitive rates.
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