Republic of the Philippines


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ERC Promulgates Regulatory Framework for the GEOP

The Energy Regulatory Commission (ERC) recently 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.  The GEOP is a mechanism that will provide end-users the option to choose RE resources as their sources of energy.

“The Green Energy Option Program is a scheme that empowers electricity consumers by giving them the option to choose Renewable Energy 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.

The GEOP Rules seeks to guide the following stakeholders: (a) GEOP End-users; (b) RE Suppliers; (c) Distribution Utilities (DUs); (d) Economic Zone Developers; ‘(e) Economic Zone Utility Enterprises; (f) National Transmission Corporation (TransCo) or its successors-in interest; (g) Philippine Electricity Market Corporation (PEMC)/Market Operator (MO); (h) Supplier of Last Resort (SOLR); (i) Central Registration Body (CRB); (j) RE Registrar; and the (k) Metering Service Providers authorized by the ERC.

Under the GEOP Rules, there are two types of end-users who may qualify to avail of the GEOP: (a) All end-users with a monthly average peak demand of 100 kilowatts (KW) and above, for the past twelve (12) months; and (b) An end-user that has been in operation for less than twelve (12) months upon effectivity of the GEOP Rules.

The ERC, under Section 6 of the Implementing Rules and Regulations (IRR) of the Renewable Energy Law of 2008, is mandated to issue the necessary regulatory framework to operationalize the GEOP in order to allow stakeholders in the electric power industry to contribute to the growth of the RE industry of the country.

“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 the GEOP finally kick off and flourish,” Chairperson and CEO Devanadera added.


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