Government mulls new rules on green energy option

MANILA, Philippines — The government is looking to fine-tune certain rules to address current issues and challenges that discourage and hamper participation in the Green Energy Option Program (GEOP).

A new report by the Clean Energy Investment Accelerator (CEIA), an international initiative, showed that a slow uptake has been seen among energy consumers within the first eight months of implementation of the GEOP, with only less than 160 end-users currently enrolled in the program.

The CEIA estimates that this only translates to less than 40 megawatts of renewable energy demand, or less than one percent of the Philippines’ total electricity demand.

It said factors contributing to the lack of participation include limited awareness among potential buyers, and inability of businesses that lease their facilities to engage directly with retail electricity suppliers.

The CEIA said improvements in the design of the GEOP and clarification on ownership of the accompanying renewable energy certificates are also needed to unlock the full potential of the program.

“Improving the GEOP will not only be advantageous for the Philippines’ energy transition, but will also support global companies to purchase more renewable energy and invest in renewable energy plants,” CEIA Philippines lead Marlon Apanada said.

“Policymakers should urgently address barriers to increase participation in the GEOP, which is a pathway not only for 100 percent renewable energy, but also for cheaper electricity costs, scaled investments in much-needed energy capacity, and timely realization of energy independence and climate goals,” he said.

The GEOP allows energy consumers to source 100 percent of their electricity supply directly from renewable energy sources, and is available to electricity end-users with an average peak demand of at least 100 kilowatts.

The program allows consumers to potentially enjoy electricity cost savings while unlocking brand reputation benefits.

The GEOP rules took effect on Sept. 3 last year, with a transitory period of three months.

“It’s quite slow on pace because there are some provisions under the Energy Regulatory Commission rules that are not harmonized with Department of Energy rules, and for that reason it slowed down a bit on the processing side, so we want to really address this with the new ERC chair,” said Jordan Ballaran, senior science research specialist of the DOE’s renewable energy management bureau.

 “But again, the promotional activities are continuous and we are seeing points for improvements which we can always translate to amendments to rules or supplemental policies in the future. And hand in hand again, we really need to discuss this with the ERC,” he said.

Ballaran said revising rules for GEOP would require a draft a policy, either an amendment or a supplemental policy, from the National Renewable Energy Board.

“From there, we will solicit comments from the public by conducting public consultations and then the ERC will follow the policy on their rules amendment,” he said.

“On this matter, we are planning to release a draft policy subject for focus group discussion by the first quarter next year,” Ballaran said.

GEOP is among the DOE’s efforts to attain the objectives of the Renewable Energy Act to accelerate the development of renewable energy resources, achieve energy self-reliance, and mitigate the effects of climate change.