Increased interest in the Philippines' green energy initiative by businesses more than doubles

The Green Energy Option Programme (GEOP), launched in 2021, is a significant policy initiative aimed at helping the Philippines achieve its clean energy targets as set out in the Renewable Energy Act of 2008. The Act aims to reach a 35% clean energy target by 2030.

The GEOP offers a clear and easy choice forward, delivering financial savings and sustainability to end-users. However, the programme has faced challenges in its implementation.

One of the main issues is the limited supply of renewable energy allocated to the GEOP. Larger companies with geothermal and hydropower capacities, such as ACEN, FirstGen, and Aboitiz Power Corporation, are currently the only ones able to meet the GEOP's requirements, which discourages small and medium players from joining and competing.

Mindanao, one of the island groups, has only five distribution utilities and electric cooperatives registered as retail net metering services providers in the GEOP. This lack of participation from smaller suppliers has hindered the programme's progress, particularly in underserved areas.

Another challenge is the registration process for companies in the GEOP, which takes half a year. This lengthy process has slowed down the programme's growth, as many renewable energy suppliers are hesitant to "reserve" their supply for a long period in the GEOP, fearing it would be considered as "wasted supply."

Moreover, local public facilities like hospitals and state universities are unable to readily access the GEOP due to a laborious procurement process.

Despite these challenges, the GEOP has attracted 451 GEOP-registered meters but only 18 renewable energy suppliers. The Climate Reality Project, in a report, has stated that this limited participation has hindered the programme's progress.

However, the Project has proposed a solution: adopting "volume matching" to allow smaller suppliers with variable solar and wind power generation to participate in the GEOP. This could encourage more participation from smaller suppliers, promoting competition and ensuring a more diverse energy supply.

The GEOP is significant for the Philippines' clean energy transition as rising demand for renewable energy will continue to drive down power prices. By September 2024, only 20% of the Green Energy Option Program meters in the Visayas region were registered, indicating a staggered or phased rollout which led to slower registration in Visayas compared to Mindanao.

Addressing the issues in the GEOP requires targeted campaigns, enhanced infrastructure, and stronger policy support. The Philippines must continue to address these challenges to ensure the successful implementation of the GEOP and the nation's clean energy transition.

Increased interest in the Philippines' green energy initiative by businesses more than doubles