The Energy Regulatory Commission (ERC) has promulgated the regulatory framework for the Green Energy Option Program (GEOP), a new policy that allows end-users to choose renewable energy (RE) as their source of energy.
“The Green Energy Option Program is a scheme that empowers electricity consumers by giving them the option to choose renewable energy (RE) as their source of electricity, which is clean and environment-friendly.
In the long run, the GEOP will help us to achieve energy independence as it reduces our dependence on imported energy sources,” said ERC Chairperson and CEO Agnes VST Devanadera.
RE can be sourced from geothermal, solar, wind, hydro, or biomass.
The ERC said the GEOP framework sets the technical and interconnection standards and wheeling fees of RE generating facilities.
It also seeks to guide the following stakeholders: GEOP end-users; RE suppliers; distribution utilities (DUs); economic zone developers; economic zone utility enterprises; National Transmission Corp. (TransCo) or its successors-in interest; Philippine Electricity Market Corp. (PEMC)/Market Operator; supplier of last resort; central registration body; RE registrar; and the metering service providers authorized by the ERC. End-users with a monthly average peak demand of 100 kilowatts (KW) and above, for the past 12 months, and an end-user that has been in operation for less than 12 months upon effectivity of the GEOP rules are qualified to join the GEOP.
Qualified end-users need to inform their current DU that they are interested in the GEOP at least 90 days prior to the signing of GEOP contract with a GEOP supplier. The same applies for end users categorized as directly connected customers. They must notify TransCo.
The concerned parties are then expected to enter into a GEOP supply contract with its prospective RE supplier.
For now, the Department of Energy (DOE) has registered 10 entities qualified under the GEOP. These are Aboitiz Energy Solutions Inc., Prism Energy Inc., Adventenergy Inc., Bacman Geothermal Inc., First Gen Energy Solutions Inc., SN Aboitiz Power-Magat Inc., SN Aboitiz Power-Res Inc., AC Energy Philippines Inc., Sparc-Solar Powered Agri-Rural Communities Corp., and Citicore Energy Solutions Inc.
They are deemed qualified GEOP supplier if the RE facility they will offer has no existing power purchase agreement with any distribution utility or end-user.
The ERC, under Section 6 of the Implementing Rules and Regulations of the Renewable Energy Law of 2008, is mandated to issue the necessary regulatory framework to operationalize the GEOP to allow stakeholders in the electric power industry to contribute to the growth of the Philippine RE industry.
“The ERC fully supports the visions of the Renewable Energy Law and will do its part in order to ensure the proper and successful implementation of the Green Energy Option Program.
The use of RE sources will not only reduce our dependence on imported energy sources, but will also reduce the country’s greenhouse gas emission and mitigate climate change. The Commission’s promulgation of the GEOP rules levels the playing field among RE generating facilities, as regulatory framework is now in place to make sure the GEOP finally kick off and flourish,” said Devanadera.
