Globe pushes reduction in RCOA threshold

MANILA, Philippines — Globe Telecom Inc. is pushing for the reduction  of the Retail Competition and Open Access (RCOA) threshold so it can shift more critical infrastructure with low energy usage to renewable energy (RE).

This is part of Globe’s strategy toward achieving net zero greenhouse gas (GHG) emissions by 2050 through network decarbonization across the country.

The lowering of the RCOA threshold would require the amendment of the implementing rules and regulations (IRR) of the Electric Power Industry Reform Act (EPIRA) of 2001.

Globe hopes  the timeline for lowering the threshold will be done  earlier than 2023, so that buildings and other infrastructure consuming between 10 and 99 kilowatt-hours (kWh) will be granted the ability to choose their preferred energy producer.

“We would like the government to consider moving forward to amend the IRR of the EPIRA law so we can expand our use of renewable energy. This will lead to wider adoption of clean energy sources not just in our business but other industries as well. Ultimately, this will help reduce the country’s carbon footprint in the hope of achieving our decarbonization targets in 2030,” Globe chief sustainability officer and SVP group corporate communications officer Yoly Crisanto said.

Under the phased implementation of the RCOA, only infrastructure with high-energy utilization–or those consuming at least 100kW or more for the preceding 12 months – are allowed to choose which electricity supplier to source power from, such as renewable energy suppliers.

To complement the lowering of RCOA threshold, Globe also called for the commercial availability of renewable energy infrastructure in Mindanao to enable massive adoption of clean power sources across the country.

This will allow Globe to tap clean power sources in powering its cell sites and other low-energy utilization infrastructure in more cities and municipalities.

Such adjustments will also give other major enterprises and micro, small and medium enterprises (MSMEs) the option to shift to clean energy sources for their infrastructure and operations.

Data released by the Department of Trade Industry on 2020 MSME Statistics showed MSMEs accounted for 99.51 percent of businesses.

“If more enterprises are able to adopt renewables for their operations, the business sector can potentially contribute more to reducing our carbon emissions and help the environment,” Crisanto said.

As it expands use of renewables, Globe also hopes the government will enhance incentives it offers for clean energy use, such as tax exemptions, to entice more companies to take on this shift.

Globe has been at the forefront of pushing for a sustainable way of doing business. Among its key interventions is to use renewable energy in its facilities, joining the pioneers in the global telecommunications industry.

As of January, it has shifted 14 key facilities to renewable energy, among these are infrastructure with high-energy utilization in Quezon City, Makati, Mandaluyong, San Juan, Taguig, Cavite, Tarlac and Cebu.

Since 2014, Globe has also deployed green solutions across its network such as fuel cell systems, direct current and DC-Hybrid generators, lithium-Ion batteries, and free cooling systems in its network.

As of end-2021, Globe has deployed over 8,500 green solutions which reduce diesel fuel consumption, emit lower carbon emissions, and provide energy-efficient cooling to facility equipment.

Its network decarbonization strategy is aligned with its commitment to uphold the historic Paris Agreement and contribute to the Philippines’ Nationally Determined Contribution  to cut carbon emissions by 75 percent in 2030.

Globe is the first and only publicly-listed company in the Philippines to commit to science-based targets aligned with the Paris Agreement, which aims to limit global warming to 1.5 degrees Celsius compared to pre-industrial levels to prevent catastrophic global warming.