The Green Energy Option Program (GEOP) is making waves among businesses in economic zones that are pursuing more economical and sustainable practices in their operations.
Having unique opportunities from sourcing 100% renewable energy at a more competitive cost, GEOP took center stage during the launch of Choosing Renewables on 31 July 2024 in Sta. Rosa, Laguna. Choosing Renewables is a series of conferences engaging economic zones to raise awareness about GEOP and other renewable energy mechanisms and accelerate renewable energy development across the country.
Greener pathways towards a renewable energy future
Energy mechanisms such as the GEOP, Net-metering, and the Expanded Roof-Mounted Solar Program (ERSP) were the primary focus of the conference.
GEOP empowers end-users to choose renewable energy as their power source without any capital cost.
“With GEOP, consumers have the power to contribute to the growth of the renewable energy industry, contribute to a cleaner and sustainable environment, and support national and global decarbonization goals,” King Anthony Ting, Senior Science Research Specialist from the Technical Services Management Division of the Department of Energy (DOE), said.
Net-metering adds another pathway for end-users to access and benefit from renewable energy. According to Kenneth Miguel Balde, Science Research Specialist II of the DOE’s Renewable Energy Management Bureau (REMB), net-metering allows consumers with less than 100 kWh installed renewable energy capacity to export excess generated power to their distribution utilities in exchange for credits, which can be deducted from their next monthly bill.
Meanwhile, the ERSP offers an alternative compliance mechanism among facilities with more than 100 kilowatt peak capacity to generate power for personal use and export excess energy to the grid.
“This program aims to attract more investments in solar energy production through innovative business models. [ERSP] decongests or relieves the transmission and distribution networks through decentralization, thereby deferring grid expansions and upgrading, as applicable,” Engr. Jordan Ballaran, Senior Science Research Specialist from DOE-REMB, explained.
GEOP’s unique merits to customers
Key to the conversation was the game-changing fiscal benefits of GEOP as cited by Alberto Dalusung III, Energy Transition Advisor of ICSC.
GEOP doesn’t charge value-added tax (VAT) in the generation, transmission, and distribution rates, compared with the additional 12% VAT from fossil fuels.
“[GEOP switchers] are not subject to international fuel prices. Renewable energy will likely not have the same fluctuations [as coal],” Dalusung added.
Further, GEOP minimizes exposure from the Wholesale Electricity Spot Market (WESM), the centralized venue for the large-scale buying and selling of electricity.
Seda Nuvali’s experience as an end-user of GEOP highlighted these benefits. Switching one of the two towers to GEOP in 2022 resulted in a reduction of the hotel’s electricity costs by 50% to 60%, which they reallocated to facility improvements. Now, Seda Nuvali is processing the switch for their second tower.
Choosing Renewables will have its succeeding legs in Tacloban City, Bacolod City, and Cagayan de Oro City this month.
“We will continue to collaborate with our stakeholders to encourage more players and suppliers to participate in the programs of the DOE. In the next legs, we will also conduct public consultation on the improved GEOP rules and regulations,” Ms. Liza Pangilinan, OIC-Division Chief of Technical Services Management Division from DOE-REMB, said.