Green Energy Option Program (GEOP)
A DOE policy allowing electricity consumers with a demand of 100 kW and above to directly source their electricity supply from renewable energy (RE) suppliers, enabling large consumers to voluntarily transition to clean energy [PEP 2023-2050 Vol. I, p.38, 2023].
Statutory Mandate (Section 9, RA 9513)
Section 9 mandates the DOE to establish the Green Energy Option program. Key statutory parameters [RA 9513, Section 9, 2008]:
- DOE promulgates implementing rules in consultation with the NREB.
- Upon DOE determination of technical viability, end-users may directly contract from RE facilities, with energy distributed through their respective DUs.
- End-user’s monthly electric bill must show how much of monthly energy consumption and generation charge is provided by RE facilities.
- TRANSCO, DUs, PEMC and all relevant parties are mandated to provide physical connection and commercial arrangement mechanisms for the program.
GEOP is thus a statutory right for end-users, not a discretionary pilot — though the DOE’s finding of technical viability is a prerequisite gate.
Original Rules Framework (DC2018-07-0019)
DC2018-07-0019 (18 July 2018) established GEOP as a non-regulated voluntary program with the following framework:
Eligibility thresholds [DC2018-07-0019, §§6–7, 2018-07-18]:
| End-User Type | Condition | GEOP Access |
|---|---|---|
| Existing ≥100 kW average peak | 12-month history | Immediate |
| New connection ≥300 kW estimated | Load profiling | Immediate |
| New connection 100–<300 kW | 3 consecutive months ≥100 kW actual | After qualifying |
| <100 kW | — | After DOE determines technical readiness |
Initial geographic scope was Luzon and Visayas only, pending Mindanao WESM + RCOA declaration [DC2018-07-0019, §8, 2018-07-18].
GEOP Supply Contract minimum terms: contract period; party names and location; RE source; guaranteed demand and energy; contract price; payment terms; Replacement Power provision; default provision [DC2018-07-0019, §5(d), 2018-07-18].
Automatic RE Supplier qualification: Entities already licensed as Retail Electricity Suppliers (RES) or Local RES under RCOA automatically qualify as RE Suppliers if they own/operate an RE Facility, or procure competitively-priced RE generation for RPS compliance [DC2018-07-0019, §11(a), 2018-07-18].
Dual billing: RE Supplier bills for RE generation and Replacement Power; DU/TRANSCO bills for wires services — all charges unbundled and itemized. DUs are not financially liable for excess power provided by RE Suppliers [DC2018-07-0019, §15(g), 2018-07-18].
End-user notice obligations: Notify DU 3 months before signing a GEOP Supply Contract; notify DU of signed contract at least 1 month before its effectivity [DC2018-07-0019, §10(b), 2018-07-18].
GEOP Oversight Committee: Chaired by DOE Undersecretary for REMB; members: REMB Director, EPIMB Director, DOE Legal Services Director, CRB representative [DC2018-07-0019, §14, 2018-07-18].
Penalties: Administrative P100,000–P500,000; Criminal 1–5 years imprisonment or P100,000–P100,000,000 fine (or twice damages/costs avoided, whichever is higher) [DC2018-07-0019, §17, 2018-07-18].
Enabling Issuances
- DC2018-07-0019 — original GEOP rules framework (18 July 2018); see section above
- DC2020-04-0009 (22 April 2020) — “Guidelines Governing the Issuance of Operating Permits to RE Suppliers under the GEOP” [NREP 2020-2040, p.30, 2022]
- ERC Resolution No. 8 s.2021 — “GEOP Rules”: defined obligations and commercial arrangements of GEOP participants, interconnection process and standards, switching/relocation/billing/payment procedures; GEOP end-users may revert to captive customer per Section 24 of the GEOP Rules [NREP 2020-2040, p.30, 2022]
Early Supplier Rollout
As of December 2021, the DOE had issued GEOP Operating Permits to 18 RE suppliers [NREP 2020-2040, p.30-31, 2022]: Bacman Geothermal | First Gen Energy Solutions | SN Aboitiz Power-Magat | SN Aboitiz Power-RES | AC Energy Philippines | SPARC | Citicore Energy Solutions | Prism Energy | Aboitiz Energy Solutions | Adventenergy | Shell Energy Philippines | Green Core Geothermal | DirectPower Services | Solar Philippines Retail Electricity | EEI Energy Solutions Corp. | AP Renewables | Therma Luzon | MPower
By December 2023, this had grown to 19 suppliers, serving 286 customers (96.3 MW) [PEP 2023-2050 Vol. II, 2023].
Eligibility
Consumers with a non-coincidental peak demand of 100 kW and above — primarily commercial and industrial users [PEP 2023-2050 Vol. I, p.38, 2023].
Uptake
As of September 2023: 263 customers switched to GEOP, representing 87 MW of non-coincidental peak demand [PEP 2023-2050 Vol. I, p.38, 2023].
As of December 2023: 19 GEOP Operating Permits issued to RE Suppliers; 286 customers, 96.3 MW non-coincidental peak demand [PEP 2023-2050 Vol. II, Table 25, 2023]:
| Grid | End-Users | Capacity (kWp) |
|---|---|---|
| Luzon | 208 | 66,224 |
| Visayas | 78 | 30,148 |
| Total | 286 | 96,372 |
Mindanao Launch
The DOE issued DC2024-03-0009 (1 March 2024), declaring 26 March 2024 as the commercial operations date for both GEOP and RCOA in the Mindanao Grid — the last major grid to implement these programs [DC2024-03-0009, §1, 2024-03-01]. This followed WESM Mindanao commercial operations on 26 January 2023. Prior to the launch date, ERC, MO/CRB, DUs, NSPs, and MSPs were required to ensure readiness [DC2024-03-0009, §1.4, 2024-03-01].
Geographic expansion timeline:
- Luzon: 26 June 2013 (concurrent with RCOA)
- Visayas: 3 December 2021
- Mindanao: 26 March 2024 (DC2024-03-0009)
GEOP REC Attribution (DC2022-06-0026)
Under the REM Rules amendment adopted in DC2022-06-0026 (June 2022), RECs generated by a GEOP-registered REM Generator are issued to the host Distribution Utility — not to the GEOP end-user. The energy corresponding to those RECs is added to the host DU’s net electricity sales for the calculation of its RPS requirements [DC2022-06-0026, §1.4, 2022-06].
In practice: when a large consumer switches to GEOP and sources energy from an RE supplier, the DU earns the REC and the associated RPS compliance credit, not the consumer directly. The GEOP end-user’s benefit is the green energy supply and the rate arrangement with the RE supplier — not direct REC ownership. See Renewable Energy Market (REM) for the full REM/REC framework.
Policy Context
GEOP operates alongside the Renewable Portfolio Standards (RPS) as part of the DOE’s consumer empowerment strategy. While RPS mandates RE sourcing by distribution utilities and retailers, GEOP enables individual large consumers to exercise direct choice over their energy supply source [PEP 2023-2050 Vol. I, p.38, 2023].
Within BARMM , GEOP implementation falls under the REDU-TWG of the Intergovernmental Energy Board , alongside RPS and the Green Energy Auction Program (GEAP) [PEP 2023-2050 Vol. I, p.43, 2023].