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Should we, together, move for a complete energy transition in the Philippines?

Should we, together, move for a complete energy transition in the Philippines?

By JM Dumdum

I

The Philippines became the first country in the world in March 2026 to declare a national energy emergency, triggered by geopolitical conflicts happening more than four time zones away. Diesel and gasoline prices doubled and even tripled almost overnight. Every jeepney driver absorbing higher fuel costs, every trucking company passing price increases down the supply chain, and every household paying more for goods that had to travel farther to get there felt the same crisis, but not in the same way. Those with the least buffer felt it the most.

The irony is that the Philippines is transitioning, but not everyone feels it.

The story of how the Philippines went from a renewable energy leader to fossil fuel dependence has been told before. What is less often discussed is what that shift created beyond the power sector.

While the grid has slowly been moving toward renewables, the transport sector tells us a different story. Millions of jeepneys, trucks, buses, and motorcycles continue to run almost entirely on imported fuel. Oil deregulation in the late 1990s removed the price cushions that once protected consumers from global fuel market swings, meaning that—unlike some of our Southeast Asian neighbors that kept initiatives to soften pump price increases—Filipino consumers absorb the full force of every global oil price movement.

When fuel prices spike, it is not only electricity bills that rise but also the cost of moving food from our farms and fisheries to palengkes and supermarkets across the country. It is the fare a commuter pays and the price of every good that has to be transported to get to our doorsteps. Oil dependence in transport is not just an environmental problem but is also a cost-of-living problem. It falls hardest on those who have no alternative.

Cost-effective and clean, RE can replace traditional sources of energy like fossil fuels for a fraction of the cost for both the government and its constituents

The exposure does not stop at geopolitics. The Philippines sits at the intersection of two compounding crises, and the incompleteness of our energy transition makes us more vulnerable to both.

On the grid side, the renewable sources Filipinos are increasingly depending on are themselves vulnerable to climate variability. El Niño events, which are projected to become more frequent and intense in 2026 and early 2027, are lowering water levels in reservoirs, reducing hydroelectric output, and forcing the grid to compensate with traditional power generation sources at precisely the moment when imported fuel is most expensive. 

Prolonged rainy days and cloud cover reduce solar output, while rapidly shifting wind patterns impacted by climate change affect wind energy reliability. The RE sources we are betting on require storage, grid flexibility, and diversified generation to be truly resilient, and we are not yet where we need to be.

On the transport side, the climate impacts are equally distinct. Extreme heat raises fuel consumption and operating costs for drivers already running on imported diesel and gasoline with no price buffer. Flooding from stronger typhoons and prolonged rainfall damages roads, bridges, and port infrastructure, disrupting supply chains and raising logistics costs that, again, fall hardest on those with the least ability to absorb them. The electric vehicle (EV) transition that would free the transport sector from such exposure becomes less reliable if the grid underperforms due to lower variable RE output during El Niño with insufficient storage.

The result is a gap in the overall idea of a just energy transition. Renewable energy (RE) is growing in the power sector, but its benefits are not reaching the jeepney driver, the market vendor, or the logistics worker whose daily costs are still dependent on events outside our shores. Every climate event that reduces RE output on the grid forces a return to traditional fuels, and every one that damages transport infrastructure raises costs for people already without price protection. These two vulnerabilities reinforce each other, and both are made worse by the fact that we have only made advances in one half of the transition.

Current efforts to transition to RE by businesses and households have showcased promising results for the economy’s stability.

Climate advocates and energy sustainability practitioners have long argued that the transition we need is a fiscal and economic opportunity, not just an environmental necessity. The evidence is already visible through billions in stranded energy assets, hundreds of millions in annual diesel subsidies for island grids, and now a national energy emergency that exposed just how thin our buffers were. Beyond the grid, every peso not invested in transport electrification, grid storage, and climate-resilient infrastructure is a peso keeping Filipinos exposed to the next shock, whether it comes from a contested strait or stronger and more frequent typhoons.

Energy transition delivers value across multiple dimensions by lowering operating costs, reducing pollution-related health risks, building consumer trust, and strengthening talent attraction particularly among younger generations. Programs from tax incentives in RE and EV infrastructure buildup to larger initiatives such as the Green Energy Option Program and the Retail Aggregation Program position RE adoption as a supply chain advantage in Southeast Asia. Electrifying transport—from e-jeepneys and e-tricycles to last-mile delivery vehicles—extends that same logic to the road. However, these programs can only fulfill their promise if they are pursued as part of a complete, holistic transition.

The energy transition we need is not only a moral commitment but also a practical one. Leaving transport behind will keep producing energy crises. Ignoring climate variability in RE planning will keep producing grid vulnerabilities. A transition that does not bring workers, drivers, and communities along will continue to leave people behind. Getting it right, therefore, means doing all of it together.

Transforming the energy conversation does not require a government position or a technical degree. It starts in our own circles: at the dinner table, in group chats, and in the communities that we are already part of. When energy is in the news, recall that this is not a one-time event but a weakness we inherited, formed by decades of incomplete decisions that affect how we power our homes, move goods, commute to work, and keep food affordable.

Ask more of your elected officials, from both local and national levels, not just for fuel subsidies or tax suspensions but for long-term investments in grid infrastructure, storage, local renewable capacity, and policies that accelerate the shift to electric and alternative fuel vehicles in public transport. Hold the business community to the same standard, asking whether the companies you work for or support have begun planning for a low-carbon future that covers both their energy consumption and their logistics and transport operations.

One’s positive experience with RE technologies is a story worth hearing; especially for policymakers still unsure of RE’s capacity to sustainably power the nation.

Now that we know how this story ends when we stop paying attention, we also know how it can end when we do. What it takes is a collective commitment, sustained across households, boardrooms, and barangay halls, to finish the transition we started for every Filipino.

This energy transition should belong to all of us. Let’s all make sure it gets there.

***

JM Dumdum

ABOUT THIS AUTHOR

Jonas Marie “JM” Dumdum is a Registered Chemist, Climate Reality Leader, Sustainability Practitioner, and a Renewable Energy Advocate. He is also a coordinator under the Energy Subcluster of the Climate Reality Leadership Corps in the Philippines. Apart from his work in management consulting, integrating sustainability-related topics into corporate governance, and advancing science-based principles in Philippine regulations for sustainability reporting, he is a co-founder and co-host of the SUSTAINARUMBLE! Podcast, the first podcast in the Philippines that tackles issues on sustainability at the national level.

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Blog Feature Eleventh Hour at the Manila Bulletin

In a chokehold: how fossil fuel dependence suffocates the Philippine transport system amidst oil price shocks

In a chokehold: how fossil fuel dependence suffocates the Philippine transport system amidst oil price shocks

Iran is approximately 7,000 kilometers away from the Philippines. But an ongoing war in that part of the world rattles ours almost immediately.

This conflict in West Asia (or Middle East to the Western world) has disrupted crude oil shipments to the Philippines, a country that imports about 98% of it to power almost everything from commerce to agriculture. A lower supply of crude oil spells oil and gas spikes across the board.

Crude oil, or petroleum, is a fossil fuel. Global usage of fossil fuels directly contributes to climate change, which is driven by greenhouse gas emissions from said fossil fuels. Much of the Philippines is powered by fossil fuels; in fact, in our energy mix, coal and oil products make up about 60% (34% and 30%, respectively).

This dependence on planet-warming fossil fuels has had us in a chokehold for years—and this grip tightens whenever the global supply of fossil fuels is disrupted.

Addressing the grip of crude oil

One of the first to feel this price shock is the transport sector, mainly public utility vehicle (PUV) operators and drivers. Households—especially those in vulnerable communities including low-income households, informal workers, small businesses, and farmers—are disproportionately affected, with limited capacity to absorb rising costs.

Before all this, what had cost around PHP 40/L of fuel for tricycle drivers now costs around PHP 90/L. Jeepney drivers, of course, weren’t spared. From PHP 71, a liter of diesel now costs around PHP 170. That’s a huge jump, especially considering how these spikes also extend to commodities such as groceries and utilities.

In a country that depends on volatile fossil fuel markets, disruptions hit transport systems and cascade into food, livelihoods, and economic stability, affecting people’s ability to move and access essential services.

To address the issue of unpredictable and uncontrollable price hikes, many voices from all sides of the political spectrum have offered solutions. Prominent proposals include transport fare hikes and suspension of excise taxes on fuel.

Despite the promise of these solutions, it has been slow-going. Recently, President Bongbong Marcos pumped the brakes on the fare hikes. And although the bill granting him powers to suspend fuel excise tax has been signed by the President, it won’t take effect until fifteen days after its publication – which in this case happens well into the second week of April.

These solutions may give the Filipino people a brief respite from the recent oil price shocks. Coveted as they are, these fixes are but temporary. They do not grant us immunity from future disruptions in global crude oil supply.

Voices from civil society and climate action organizations offer a different perspective: phase out dependence on fossil fuels and accelerate the shift to renewable, indigenous sources of energy.

Hands on our necks, we don’t shift to breathe better; we push back to escape the grip.

Renewable energy sources like solar power is touted as a cheaper, more stable alternative to fossil fuels
Loosening fossil fuels’ hold

Powering our country mainly with fossil fuels has put us in this unenviable position of being helpless amidst geopolitical tensions. But should we invest in domestic and renewable energy resources, we can reduce, if not entirely avoid, disruption in energy supply.

This article by the Institute for Climate and Sustainable Cities (ICSC) has outlined how other countries like India and Indonesia have implemented efforts to provide accessible public transportation. This they did through people-centered fare policies and electrifying transport fleets.

Fast-tracking the shift to clean energy also provides us with a cheaper alternative to fossil fuels, not to mention a healthier one. For example, diesel-powered vehicles are known to belch black smoke in our streets, significantly making the air quality poor and harming human health. With diesel prices skyrocketing, utilizing electric vehicles sounds attractive.

Accelerating transition to cleaner public transport, efficient logistics systems, and strengthened transport systems that are affordable, accessible, and reliable is essential. Active mobility programs such as cycling and walking must also be a core of the government transport program, not just in reducing dependence to fuel-based transport amid global price volatility, but also to advance for sustainable and resilient transportation systems.

Local renewable energy infrastructure allows the Philippines to shield itself from rotating blackouts and high electricity costs during geopolitical tensions that disrupt fossil fuel supply chains. RE is cheaper, cleaner, and is a long-term solution to our energy woes compared to stopgap measures such as the suspension of fuel excise taxes or declarations of national emergency.

We’ve seen RE easing fossil fuel dependency issues in Pakistan. When the Russia-Ukraine war broke out in 2022, the citizens of Pakistan suffered energy shortages. This prompted a wide-scale, household, and business-led adoption of rooftop solar. This transition has so far ‘insulated Pakistan’s power sector’ from current market disruptions.

But in the Philippines, that’s easier said than done without government intervention. For example, the planned PUV Modernization Program drew a lot of flak from stakeholders for placing the burden of electrification on small-scale operators and drivers. A unit would cost upward of a million pesos, a price tag entirely unaffordable to the common tsuper.

Besides, an electric vehicle charged by a fossil fuel-powered grid like ours is still vulnerable to global oil supply shocks. Electrification without decarbonization will not pay off in the long run.

Climate finance is needed to fund just transition initiatives, including replacing fossil fuels with clean energy
Financing our freedom

What we need is money to fund the just transition to renewable energy – money we can get either from the government or outside sources such as multilateral banks or other countries looking to offset their emissions. 

Using climate finance, we can subsidize the electrification of our transport fleets. Doing so will now shift the burden of powering our transport system (and indeed our whole economy) to the government instead of the Filipino people. 

This means securing a steady supply of climate finance, or funding reserved for programs that reduce a country’s emissions or bolster its climate resiliency. This is aligned with the concept of just transition, a principle that leaves no one behind in sustainable development.

Being one of the top climate-vulnerable countries in the world, the Philippines should be given priority to receive climate financing. Given our historically low emissions, by rights we should be cashing in on the concept of ‘polluters pay’ in terms of global responsibility to address climate change.

If handled correctly, climate finance can catalyze our transition to renewable energy and our freedom from fossil fuel dependence. Although this cannot immediately relieve the common Filipino from recent price hikes, it can surely shield them from similar incidents in the future. 

Institutionalizing decarbonization efforts is well under way in the Philippines. A prime example of this is our Nationally Determined Contribution (NDC), commitments we’ve made to reduce our emissions under the 2015 Paris Agreement. Under our NDCs are policies and measures designed to reduce greenhouse gas emissions in a variety of sectors, including top emitters like transport and energy—fields directly affected by the volatility of our fossil fuel dependence.

Policies and measures in our NDCs outlining our transition to reduce fossil fuel usage in transport include the PUV Modernization Program, promotion of electric vehicles via the EV Industry Development Act, and expansion of active transport initiatives.

Currently, the Climate Change Commission and its partner agencies in climate policy are drafting the country’s most recent NDC text. Climate Reality Philippines hopes that these revamped NDC commitments reflect the urgency needed in addressing both the climate and energy crises, while keeping emissions reduction pledges ambitious and inclusive. 

After all, the NDC is not just a document outlining our plans to address climate change; it is a framework of how we must do it while ensuring sustainable development. 

Solutions like shifting to clean energy and reducing emissions then become matters of economic, health, and climate foresight. What we do now impacts how we get to respond to crises out of our control—like a war thousands of kilometers away.

***

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Press Releases

Climate Reality PH’s Project Niche empowers Pangasinan youth to solve the plastic crisis

Climate Reality PH’s Project Niche empowers Pangasinan youth to solve the plastic crisis

Last February 26, The Climate Reality Project Philippines held a two-day ‘Klima Eskwela: Climate Science, Arts, and Action’ workshop at Pangasinan State University (PSU) Main Campus in Lingayen, Pangasinan.

Held in partnership with the Climate Change Commission (CCC), PSU, and the municipal government of Lingayen, this event taught student leaders the fundamentals of the climate and plastic crises in hopes of encouraging participants to develop innovative ways to promote grassroots solutions to these issues.

“We’re all here to talk about climate change, whose impacts you have much experience with. But we want you to understand not just the impacts but also the solutions,” said Aimee Oliveros, Branch Manager of Climate Reality Philippines.

Providing seed funds and mentorship to bring these ideas to life is Project Niche, Climate Reality Philippines’ project incubator and capacity-building initiative for the youth. 

PSU is the third state university to be offered a chance to implement a plastic-free campus initiative with funding through Project Niche; the two others were Caraga State University and Eastern Visayas State University, both of which hosted Klima Eskwela.

“The fight against climate change and plastic pollution will be won not only by policies or international negotiations abroad. It starts in the classroom and in your own homes. It’s nurtured in our communities and fostered by the leadership of young people who are committed and willing to act,” said Atty. Rachel Anne Herrera, Commissioner at CCC.

Learners include student leaders and science majors, as well as professors and university administrators

Located along the Lingayen Gulf, the municipality of Lingayen is prone to a number of climate hazards typical of seaside communities, including coastal flooding and storm surges. But when asked about their unique experience of climate change, PSU students said that extreme heat is felt and observed most immediately.

“During the times na super init [here in Lingayen], it’s humid so yung heat ramdam na ramdam mo na talaga sya; if you’re not in a well-ventilated place, hinihingalin ka talaga. It gets to the point na sa sobrang init nya, kahit malapit lang [ang pupuntahan mo], kailangan mong magtricycle because yung init n’ya— you’re gonna get burned,” said Marrian Flor Castro, the first-year representative of PSU Lingayen’s Student Alliance of Future Biologists.

(“During the times when it gets extremely hot here in Lingayen, it’s very humid, so you really feel the heat intensely. If you’re not in a well-ventilated place, you can end up short of breath. Sometimes it gets so hot that even if you’re only going somewhere nearby, you still need to take a tricycle because of the heat—you feel like you’re going to get burned.”)

Early this March, the community of Lingayen experienced a heat index of 40°C. In the same month last year, it reached an all-time high of 48°C according to our state weather bureau, PAGASA. This ‘danger level’ warns of high risks of heat cramps, exhaustion, and stroke. In fact, several stories of such medical emergencies were common in Lingayen.

First-year biology student Marrian Flor Castro talks about the impact of climate change in her community, highlighting the extreme heat often experienced by Lingayen

In addition to adverse health impacts, climate change has also disrupted the students’ learning. In recent years, the extreme heat has worsened to the point where classes had to be suspended for up to a week. 

“Ang naging epekto po sa amin na mga schools na nagpo-produce ng mga isda, may times po na yung mga laboratories po namin, yung mga experiments po namin, yung mga isda— namatay po sila,” said Lance Phillip Urbien, Fishery Major and Supreme Student Council President of PSU Binmaley Campus.

“Ang nangyari po ay either termination po of the study or uulit kami. Akala po namin masaya na walang pasok— pero ‘yun pala, napabayaan namin. Kasi di rin kami papayagan pumasok ng school so hindi kami nakakapakain ng isda. Halos natuyo na pala ang tubig.”

(“For us in schools that produce fish, there were times when our laboratories and experiments were affected—our fish died. What happened was that our studies were either terminated or we had to start over. At first, we thought having no classes was good, but it turned out that things were neglected. We also weren’t allowed to enter the school, so we couldn’t feed the fish. Eventually, the water had almost dried up.”)

Urbien also connected these with the same issues faced by Lingayen fisherfolk, whose livelihood is prone to being disturbed by the rising temperatures.

PSU-Binmaley Supreme Student Council President Lance Phillip Urbien presents his group’s sensory map, an artwork showcasing their unique perspective on climate change

Their students’ struggles with climate change are not lost to PSU administrators. No less than the Lingayen Campus Executive Director, Dr. Marie Claire Briones, extended her support for the students’ meaningful participation in Klima Eskwela.

“[Climate change] is a cry for help from nature; [it’s asking us] to be its stewards. This means doing something to address the crisis– using our voice. After all, what’s the sense of having one if we don’t use it?” said Dr. Briones.

A total of 75 participants attended the workshops, comprising science majors, youth organization leaders, and professors from PSU’s Lingayen and Binmaley campuses. By the end of Klima Eskwela, attendees were equipped with skills in project management and policy development.

Klima Eskwela’s lectures about the climate and plastic crises, were taught by Sophia Manzano, Development Management Officer from CCC, and Joseph Pilapil, Climate Reality Philippines’ Plastic-Free Reality Program Lead.

Local climate action and solid waste management plans were also discussed by guests from local governments, namely: Joe Simon Coloma, Climate Resiliency Staff from the Pangasinan DRRMO; Clark Mamaril, Local DRRM Officer at the Lingayen Municipal DRRM Office; and Adamson Miña, Jr., an Environmental Management Specialist from the Lingayen Municipal Environment and Natural Resources Office (MENRO).

AktivAsia Pilipinas’ Engr. Elainne Lopez discusses the art and science of campaigning for the planet

AktivAsia Pilipinas’ Engr. Elainne Lopez facilitated the project management workshops, while Atty. Megan Mateo from CCC’s Legal Services Division taught students about policy writing.

These sessions were designed to encourage learners to develop youth-led and community-based solutions to the plastic crisis, to be supported by resources from Project Niche.

For example, Miña discussed previous efforts of the MENRO to engage PSU in tackling their waste problem, including conducting a waste analysis and characterization study (WACS) in the university. 

The WACS with PSU showcased what types of waste the institution produces, which it can use to implement policies to lessen or eliminate certain types of trash like single-use plastics. Based on the WACS conducted, 42% of PSU’s waste were recyclables like plastic and paper.

From these insights and the lectures conducted during Klima Eskwela, the students drafted potential policies to address waste in PSU. This includes information, education, and communication (IEC) campaigns, banning of waste burning, and eliminating single-use plastics in the campus through policies and regulations.

Klima Eskwela opened up opportunities for us— as students, as a small part of the community, the small things we do can help solve problems [like climate change]. Na, even though you’re small, your participation can be part of the solution,” added Castro.

***

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Blog Feature Eleventh Hour at the Manila Bulletin

GEOP amendments help hospitals power “care” with renewable energy

GEOP amendments help hospitals power “care” with renewable energy

First, do no harm.

As their first steps into the profession, doctors recite the Hippocratic Oath as a reminder of the ethical principles that guide their practice. Calling upon various Greek gods, new physicians swear to “abstain from all intentional wrongdoing and harm.”

Yet today, the healthcare sector faces a profound ethical contradiction. According to a report by Health Care Without Harm, in collaboration with Arup, healthcare is responsible for 4.4% of global net greenhouse gas emissions, or roughly 2 gigatons of carbon dioxide equivalent.

Hospitals exist to save lives. However, the electricity that exists as their lifelines is contributing to a climate crisis that threatens health outcomes at every level, from rising heat-related illnesses to worsening air quality. 

This contradiction has pushed healthcare institutions to rethink how they source and consume energy, particularly in countries like the Philippines, where electricity generation remains heavily dependent on fossil fuels.

In response to the growing recognition that climate change is a public health issue, the Department of Health (DOH) established the Health and Climate Change Office. Among its priorities is to lower emissions across healthcare facilities nationwide – from public hospitals down to barangay health clinics.

Making Philippine healthcare healthier for the planet

As early as 2024, the DOH was exploring renewable energy as a pathway for healthcare facilities. In a policy dialogue convened by the Asian Development Bank, The Climate Reality Project Philippines, Institute for Climate and Sustainable Cities, and the Climate Change Commission, DOH identified the Green Energy Option Program (GEOP) as a mechanism to help hospitals transition away from fossil fuel–based electricity.

GEOP empowers electricity consumers to choose renewable energy as their electricity source, offering institutions a way to reduce emissions while managing long-term energy costs. Yet participation from the healthcare sector remains limited. Out of 852 GEOP participants nationwide, only 16 are hospitals.

One of them is Mary Chiles Hospital, which transitioned to renewable energy under GEOP in November 2025. Seeking an affordable and reliable energy solution, the hospital partnered with 350 Pilipinas, a civil society organization working on climate and energy issues. 

Another example is Healthway Cancer Care Hospital, a private specialty cancer hospital in Taguig. By switching to renewable energy through GEOP, the hospital supports its mission to provide high-quality care while reducing its carbon footprint, demonstrating that even energy-intensive specialty facilities can lead the way in sustainability.

Although these examples demonstrate the potential of GEOP to help hospitals integrate renewable energy into their operations and align sustainability with patient care, it has been difficult to onboard hospitals into GEOP.

Addressing the challenges of going green

Hospitals operate around the clock, with life-saving equipment, emergency rooms, and patient care requiring uninterrupted power. However, some GEOP suppliers mostly have solar and wind in their portfolios, which generate electricity only at certain times of the day.

This mismatch between continuous demand and variable supply has made it more difficult for hospitals to participate fully in GEOP, even as they remain committed to renewable energy and sustainability. 

This is a challenge faced by many other establishments looking to shift to clean energy via GEOP, as reported in Climate Reality Philippines’ recently published policy brief on the program. 

Borne from the organization’s work on renewable energy promotion and stakeholder engagement, the document outlines issues and solutions surrounding the GEOP implementation. These include enhancing information campaigns to raise awareness, lowering the energy requirement to participate in the program, and streamlining existing GEOP processes.

Taking challenges into account, in January 2026, the Department of Energy signed and released amendments to GEOP to address these challenges. A key feature is volume matching, which allows renewable energy suppliers to match the total renewable energy demand over a defined period (like a month), rather than requiring real-time matching. 

This allows renewable energy suppliers some flexibility in supplying to their customers – especially for customers that operate beyond the peak hours of solar and wind, such as hospitals.

The amendments also lowered the participation threshold from 100kW to 50kW, opening the door for smaller health facilities, such as barangay health clinics, to join GEOP. 

Combined, volume matching and the lower threshold provide a pathway for both large hospitals and smaller community clinics to reduce their carbon footprint while maintaining a reliable energy supply.

With the GEOP amendments in effect, full implementation now banks on the Energy Regulatory Commission to update the corresponding omnibus rules. For the healthcare sector, this represents a tangible opportunity to align operational needs with sustainability goals. 

With these GEOP amendments, “first, do no harm” extends beyond the patient bedside, ensuring that the very energy powering hospitals become part of the cure – for patients and the planet alike.

***

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Blog Feature Press Releases

Climate Reality PH holds renewable energy conference, proposes amendments to Green Energy Option Program

Climate Reality PH holds renewable energy conference, proposes amendments to Green Energy Option Program

Last January 21, The Climate Reality Project Philippines held a one-day conference tackling pertinent issues surrounding renewable energy (RE) transition in the country, centering discussions around the DOE’s Green Energy Option Program (GEOP).

Held at Novotel Manila, the conference was entitled REalize 2026: Advancing a Renewable Energy Future through GEOP Research, Policy, and Market Insights

Part of the program was Climate Reality Philippines’ launch of two resources borne from the organization’s work in promoting GEOP— a policy brief of the program and a study of its impacts on its end-users. 

The organization’s Energy Program Lead, Pocholo Enriquez, presented the findings to an audience of energy stakeholders. These include private businesses, distribution utilities, and RE suppliers.

“What we really need to make sure is that GEOP can stand on its own as a market mechanism. [One that we don’t have to guide] along the way just to make sure it’s a viable product,” said Enriquez.

Also in attendance were officials from the Department of Energy’s Renewable Energy Management Bureau, whose work involves managing GEOP and other voluntary RE policies and processes.

“We are here not just to improve our Green Energy Option Program, but also to help shape a power system that’s cleaner, more competitive, and more sustainable. Together, let us realize a future worthy of the next generation,” said Liza V. Pangilinan, Division Chief at the National Renewable Energy Board-Technical Services Management Division (NREB-TSMD) of DOE.

 

GEOP, four years later

Established under the Renewable Energy Act of 2008 or RA 9513, GEOP is a voluntary market mechanism that empowers end-users to source clean energy directly from suppliers. The program also mandates that energy supplied to customers is 100% renewable.

GEOP and similar programs pushing for a local RE shift align with the government’s goal of reducing its emissions to combat climate change, given the Philippines’ grave vulnerability to its impacts.

Currently, emissions reduction is a key driver of investment, especially for businesses whose mother companies abroad have adopted sustainability as a core pillar. This, in addition to RE’s cost-effectiveness, has encouraged many businesses to consider shifting to cleaner energy through programs like GEOP.

Since its launch in December 2021, GEOP has garnered a total of 833 end-users. Last year, GEOP also recorded its biggest increase in users so far: in 2025, a total of 313 users were added to 2024’s 520. 

Based on Climate Reality Philippines’ study, GEOP users’ electricity generation costs were on average 29% lower under the program (PHP 901,724) than their business-as-usual operations (PHP 1,269,042). 

GEOP also demonstrates a high retention rate (97.7%) and sustained growth, highlighting its potential as a scalable and cost-effective renewable energy market mechanism.

Though these numbers are indeed promising, GEOP is by no means a perfect program. According to Climate Reality Philippines’ research, more work is needed to optimize the program’s implementation. 

These include recommendations to address concerns on GEOP supply variability; streamline existing GEOP processes; and expand access through retail aggregation, among others

These findings were further supported by a study conducted by advocates from SUSTAINARUMBLE!, a public service media tackling discussions about challenges in sustainability. 

SUSTAINARUMBLE! Co-founder Jonas Marie Dumdum presented to the conference their findings from conversations with a wide range of RE suppliers, whose concerns with GEOP’s implementation parallel those of the end-users.

“[When addressing the issues raised by our suppliers], we need to pin down three things: [the first is] better understanding of GEOP compared to all the other programs that the demand side may have. Second is not just to drum up RE supply, but ensure that there is reliable supply. The third is really more of what is in it for companies to switch to GEOP?” said Dumdum, who also works at the Nomura Research Institute as a Senior Consultant.

For its part, the DOE is very open to the recommendations presented in the conference, highlighting their drive to improve GEOP through more avenues like REalize 2026

“The demand for clean energy is real and it is growing. So to support this momentum, the DOE has been revisiting and refining the GEOP rules. Last year, we held a series of public consultations to present major amendments, including eligibility criteria, the introduction of retain aggregation and more flexible provisions for a replacement power,” said Division Chief Pangilinan.

Alongside Climate Reality Philippines and other critical partners in RE promotion, the DOE-REMB has consulted with many stakeholders for ways to enhance GEOP’s reach and accessibility. 

Expressed in the conference was the hope that these consultations would result in timely and crucial amendments to GEOP’s regulations.

“[You have to understand that all of the amendments proposed have trade-offs. That’s why we’re balancing the amendments.] I think the most urgent part is on the supplier side, particularly the [subject of volume-matching] because it’s really going to help us deal with the 24/7 variability issue,” said Engr. Jordan Ballaran, Senior Science Research Specialist at the DOE.

“The second [most urgent] is to create more incentives for our customers to open up the voluntary RE market—not just for GEOP but for the entire [range of] customer programs as well,” Engr. Ballaran added.

***

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Blog Feature Press Releases

Putting RE in Resilience: how the Green Energy Option Program can help VisMin tackle energy woes, climate risk

Putting RE in Resilience: how the Green Energy Option Program can help VisMin tackle energy woes, climate risk

The Climate Reality Project Philippines, in partnership with the Department of Energy (DOE), and the Philippine Economic Zone Authority (PEZA), recently held the second leg of Choosing Renewables: Information Campaign on the Green Energy Option Program (GEOP) and other Voluntary Renewable Energy Mechanisms in Tagbilaran, Bohol.

Participants included local power distribution utility companies, government officials, and business owners, whose interest in renewable energy (RE) was evident during the series of talks. 

The organization aimed to showcase the many benefits of shifting to clean energy, especially in the provinces of Visayas and Mindanao. These areas are frequently subjected to electricity shortages due to recurring power plant outages coupled with rising demand.

“What we want to do is to make sure that access to GEOP can be seen in all provinces and all regions that are accessible to the grid. Then we find that there are some bureaucratic hurdles and limited RE supply accommodated to GEOP, but the work that we’ve done so far has been addressing these problems, and we are excited to see what the coming years will do to GEOP,” said Pocholo Enriquez, Energy Program Lead of Climate Reality Philippines.

More than issues of energy security, the VisMin islands also face high risk of climate change impacts, like strong storms and intense heat waves. The most recent of these is Typhoon Tino, with more than a hundred fatalities  across VisMin during its onslaught.

Given VisMin’s issues of energy instability and climate hazards, the Tagbilaran leg of Choosing REnewables emphasized the importance of investing in RE as a means to address both dilemmas. Through GEOP and other voluntary RE mechanisms, shifting to cleaner and stabler power is made easier for businesses most impacted by energy and climate woes.

“We are not only expanding customer choice, we are also creating a stronger market signal for investments in clean and indigenous energy resources. As you all know, having imported fuels has a lot of challenges both in price and supply. So this means more opportunities for innovation, greater competition, and a significant push towards reducing our dependence on imported fuels,” said DOE Undersecretary Mylene Capongcol.

By nature, RE is a more stable  source of energy. Unlike traditional energy sources like coal and oil, when grounded in local, natural resources (sunlight, water, and wind), RE is significantly less vulnerable to global fuel price shocks. Incorporated into existing energy sources, RE also diversifies the country’s power mix. In the unfortunate event of coal plant shortages, RE can be tapped to power communities,

On top of this, investing in RE is a means to reduce one’s carbon footprint— a term representing contributions to global warming. Carbon footprints or emissions are produced by fossil fuel usage, on which most power plants depend. 

Shifting to RE reduces one’s dependence on fossil fuels, thereby considerably lessening carbon emissions. Given the energy sector’s huge contribution to the Philippines emissions, energy policymakers and civil society stakeholders alike continually emphasize the need to lower the country’s carbon footprint through an RE transition.

“Our goal is to promote how renewable energy can empower people with a promising future of sustainable living on a habitable planet,” said Aimee Oliveros, Interim Branch Manager of Climate Reality Philippines.

In regions highly vulnerable to climate impacts and power shortages, GEOP works as a mechanism to hit two birds with one stone. On top of building a more secure energy sourcing plan for its communities, VisMin can also contribute to the global movement to reduce emissions by investing in RE through GEOP.

“The GEOP market is expanding rapidly, and overall, electricity demand is growing every year. There are more opportunities for substantial development, especially in Visayas and Mindanao, as we shift to cleaner energy,” said Michael John Domingo, Science Research Specialist at the DOE’s Renewable Energy Management Bureau.

To dive deeper into the expanding GEOP market, Climate Reality Philippines is set to release a study on GEOP’s impact and benefits on its current end-users. The report will be launched January 2026, serving as a follow-up study to the organization’s prior analysis of GEOP’s role in enabling the RE renaissance in the Philippines.

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