The Energy Regulatory Commission (ERC) promulgated the regulatory framework for the Green Energy Option Program (GEOP) that sets the technical and interconnection standards and wheeling fees of renewable energy (RE) generating facilities.
GEOP is expected to further promote RE investments as it institutionalizes a mechanism that will provide end-users the option to choose cleaner sources of energy from their power distributors.
The GEOP Rules note two types of end-users that may qualify to avail of such: all end-users with monthly average peak demand of 100 kilowatts 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 rules.
Likewise, the rules will be made effective for GEOP end-users, RE suppliers, distribution utilities, economic zone developers, economic zone utility enterprises, the National Transmission Corp. or its successors-in interest, the Philippine Electricity Market Corp., suppliers of last resort, GEOP central registration body,RE registrar and metering service providers authorized by the ERC.
“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 the GEOP finally kick off and flourish,” Agnes Devanadera, ERC chairperson, said in a statement.
The ERC, under the implementing rules and regulations of the Renewable Energy Law of 2008, is mandated to issue the necessary regulatory framework to operationalize the GEOP.
As of end-2020, the country’s total installed on-grid capacity was at 25,663 megawatts (MW), 7,599 MW of which or 29.6 percent is from RE sources comprised of hydro, geothermal, wind, biomass and solar.
Coal remained the top power source with a share of 10,944 MW equivalent to 42.6 percent.
Last year, Energy Secretary Alfonso Cusi expressed optimism that the country can achieve a low carbon scenario as there will be slower growth of the total primary energy supply due to energy efficiency and conservation measures.
Cusi said combined clean energy sources in the country will reach more than 66 percent of the total generation by 2040, as the government prioritizes the issuance of the National Renewable Energy Program 2020-2040 to achieve the envisioned target of around 34,000 MW of RE installations by 2040.
Cusi added the push for more RE will also be helped by the updating of the Philippine Energy Plan 2018-2040 which contained necessary adjustments because of recent global developments, including the impact of the pandemic on the energy sector. – Jed Macapagal
