The clock is ticking for the Philippines to transition to a clean energy future.
The Department of Energy, through the National Renewable Energy Program 2020-2040, aspires to increase the share of renewable energy in the country’s power generation mix to 35 percent by 2030 and 50 percent by 2040.
The Green Energy Option Program (GEOP) facilitates the transition to clean energy by enabling eligible entities to shift from being captive markets of distribution utilities or electric cooperatives to sourcing power directly from renewable energy suppliers.
With GEOP, entities have the power to choose renewable energy over fossil fuels, allowing them to source 100 percent power directly from a renewable energy supplier.
However, a survey by the non-profit organization Climate Reality Project PH and public service media Sustainarumble! revealed that businesses have little to no awareness of GEOP and other renewable energy programs. While these entities are aware that they are currently sourcing power from expensive fossil fuels, mostly coal, they feel constrained by the limited option to switch to 100 percent renewable energy.
The survey, undertaken in 2023, assessed the level of awareness and needs of over 400 businesses and companies eligible to participate in GEOP. The survey report was launched during the conference “REalize: Enabling the Just Energy Transition toward Inclusive, Resilient, and Sustainable Development” organized in Nov. 2023 by Climate Reality Project PH, Institute for Climate and Sustainable Cities, and Institute for Corporate Directors.
GEOP's role in the clean energy scene
Since its launch in late 2021, GEOP has had 265 end-users participating in the program, among which is Linden Suites, a hotel based in Ortigas. From sourcing its energy through GEOP in 2022, Linden Suites slashed electricity costs by 8 to 10 percent, saving a staggering ₱7.2 million.
"We attract environmentally conscious travelers. GEOP is one of our selling points," said Linden Suites General Manager Maria Celeste Romualdo.
Despite such success stories, the survey found limited awareness about GEOP. Many businesses mistakenly believe solar panels are the only option for 100 percent renewable energy.
First, the survey found that 74 percent of the respondents learned about GEOP through its outreach efforts, while the rest knew about GEOP through other sources — indicating a need for increased awareness, especially for small and medium enterprises.
Second, 95 percent of the respondents said “yes” or “maybe” when asked about their openness to participate in GEOP, implying their willingness to learn and participate in GEOP.
Lastly, 95 percent of the respondents want to know more about GEOP and other programs to support national goals of accelerating renewable energy development in the Philippines.
Policy reform recommendations
Based on the responses from businesses in the survey, policy reforms are warranted to ensure that promising initiatives, such as GEOP, would be further strengthened and advanced.
Recommendations for the government include beginning discussions on lowering the threshold from 100 kilowatts per month to a more suitable level for small and medium business owners, implementing guidelines on aggregating end-users interested in GEOP who do not meet the minimum threshold, launching GEOP in Mindanao, and ensuring connectivity and dispatch of renewable energy from Luzon to Visayas and Mindanao.
Meanwhile, a recommendation for the Independent Electricity Market Operator of the Philippines includes developing knowledge products on GEOP. Climate Reality Philippines has been contributing to this effort.
In 2023, Climate Reality’s "Realtalk" regional workshops produced 86 campaigners and 16 campaign plans in support of GEOP. These campaigners are force multipliers who can amplify the presence of GEOP across Luzon, Visayas, and Mindanao.
Aside from training, the branch is now focused on providing them with materials and communication skills to engage and influence potential switchers within their area. Participants were provided with knowledge materials that will be beneficial for them as they introduce GEOP to private and public entities from their region.
This 2024, Climate Reality will expand its efforts to increase awareness and build the capacity of renewable energy suppliers about GEOP. The organization will also create platforms and opportunities to match eligible end-users with invited renewable energy suppliers to initiate discussions on proceeding with GEOP.
To learn more about GEOP, visit climatereality.ph/geop/