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In January 2026, stakeholders in the Philippines’ renewable energy (RE) space convened at the REalize 2026 conference to explore ways to strengthen the Green Energy Option Program (GEOP) and accelerate the nation’s clean energy evolution.
Hosted by the Climate Reality Philippines and attended by government officials, private sector actors, and energy advocates, the event underscored how GEOP, launched in December 2021, has begun reshaping how electricity is sourced and consumed in the country. The program’s growth, challenges, and potential for expansion were front and center, highlighting the importance of giving consumers a real choice in their energy mix as the nation pursues both sustainability and affordability.
(Also read: Benguet Battery Storage Projects to Add 80 MW of Support for Luzon Grid)
What Is GEOP and Why Is It Needed?
The GEOP is a policy initiative established under the Renewable Energy Act of 2008 that gives electricity end-users the option to source their power exclusively from RE resources.
Under traditional electricity arrangements, large energy users like industrial plants, malls, hospitals, and universities are constrained by the supply portfolios of distribution utilities that often still rely heavily on fossil fuels. GEOP breaks this pattern by allowing these customers to contract directly with RE suppliers, provided they have an average peak demand of at least 100 kilowatts (kW) over the past 12 months. The Independent Electricity Market Operator of the Philippines (IEMOP) serves as the program’s Central Registration Body.
According to a Climate Reality PH study, the rationale for GEOP is compelling. The Philippines has long grappled with a high dependence on imported fossil fuels, which account for nearly 78% of its power generation mix. This reliance exposes consumers and businesses to price volatility and upward pressure on electricity prices.
By giving consumers the choice to source electricity from RE like solar, wind, geothermal, biomass, and hydropower, GEOP aims to drive demand for clean energy, reduce carbon emissions, and foster long-term energy affordability and sustainability.
Moreover, GEOP aligns with broader national and global climate goals, including commitments to reduce greenhouse gas emissions and achieve net-zero targets. As more firms, particularly multinational and export-oriented businesses, adopt sustainability pledges, access to RE becomes both an environmental and commercial priority.
GEOP’s Notable Achievements
Since its introduction, GEOP has produced tangible outcomes for participating electricity consumers.
- Growth in participant numbers
Since its formal rollout, GEOP has attracted increasing participation. By 2025, the program had recorded 833 end‑users, marking continued growth from initial figures. Notably, 2025 witnessed its largest annual increase, with 313 new users added — an encouraging sign amid broader market penetration challenges.
- Cost savings
According to research presented at the climate conference, GEOP users enjoyed electricity generation cost reductions of roughly 29% compared to business‑as‑usual scenarios.
Earlier studies corroborate this trend, with participants in a 2024 survey seeing monthly savings averaging around ₱355,000 and a 20% reduction in electricity expenses after switching to renewable suppliers.
- Environmental impact
GEOP participants have also achieved substantial reductions in carbon emissions, accelerating their corporate sustainability strategies. In the 2024 survey, switching to renewable suppliers led to an average reported 79% reduction in carbon emissions, equivalent to nearly 38.9 million kilograms of carbon dioxide.
- High retention rates
Participant retention, which measures how many end-users stay with their chosen GEOP supplier, has been high. The program reported a 97.7% retention rate, indicating strong satisfaction with the program and its benefits among enrolled users.
- Supplier participation
Several energy companies have secured permits to operate as Renewable Energy Suppliers (RESs) under GEOP, including major players such as BacMan Geothermal (Energy Development Corporation), First Gen Energy Solutions, SN Aboitiz Power entities, and AC Energy Philippines, among others.
The inclusion of utility affiliates, such as Meralco’s MPower business unit, further signals broader corporate interest in enabling green energy options.
Challenges Facing GEOP
Despite its achievements, GEOP confronts significant obstacles that limit its impact and broader adoption.
- Limited program awareness
Studies and government assessments point to low public awareness of GEOP. Potential end‑users either do not know the program exists or lack clarity on how to enroll and benefit from it.
Similarly, GEOP’s technical requirements and procedural steps can seem complex, deterring businesses. The application and switching process has been described as “long and tedious”, sometimes taking up to six months, which undermines momentum.
- Supply constraints
A core challenge lies in the limited number of RESs relative to potential demand, resulting in constrained availability of RE volumes that participants can procure. This undersupply has contributed to slower growth in the number of GEOP participants than policymakers anticipated.
- Bureaucratic and regulatory hurdles
Bureaucratic processes, including accreditation for suppliers and procedural approvals for end-users, have slowed program uptake. Regulatory complexities surrounding RE certificates, grid integration, and compliance reporting also present challenges.
- Market Disparities
Most GEOP participants have been concentrated in Luzon, while uptake in Visayas remains modest at 20%. As of 2024, no Mindanao participants were reported, reflecting disparities in infrastructure, supplier presence, and economic conditions across regions.
- Eligibility thresholds and access
The historical threshold requiring an average monthly peak demand of at least 100 kW creates a barrier for many smaller enterprises or facilities that might be interested in sustainable energy solutions but do not meet the quantitative criteria.
In 2024, the Department of Energy (DOE) announced updates to GEOP to make it more flexible. End-users may now source up to 50% of their electricity from RE during a three-year transition period, and the minimum capacity threshold may be lowered to allow more participants. Economic zone entities can alsojoin through direct contracts with RESs.
(Also read: When Green Power Falls Short: The Summer Energy Dilemma)
Lessons from Real‑World Models Abroad
Several countries have explored mechanisms similar to GEOP with varying degrees of success. Examining how these systems perform overseas provides insights that the Philippines can adapt to its context.
- Europe: Corporate RE procurement
In Europe, corporate procurement of RE has become a major driver of clean energy growth. Companies increasingly enter Power Purchase Agreements (PPAs), which are long-term contracts to buy electricity directly from renewable power producers, as a way to secure RE supply and reduce emissions. According to industry data, Europe has seen significant growth in corporate RE sourcing, reaching a record-breaking 10.8 gigawatts (GW) in 2023. Additionally, events bring together buyers and sellers to expand procurement opportunities.
- United States: Retail choice and utility‑scale procurement
In 2024, U.S. corporations continued to drive RE growth through PPAs, signing more than 200 deals totaling over 19 GW of capacity. The tech sector led the way, accounting for more than two-thirds of these corporate contracts. Solar energy dominated the portfolio, with photovoltaic projects representing 70% of the capacity procured by non-utility off-takers.
Meanwhile, Utility Green Tariffs, which allow companies to source RE through their local utility under special rates, have also contributed significantly to corporate renewable contracting.
- Australia: Accreditation strengthens public trust
Australia’s National GreenPower Accreditation Program allows both households and businesses to purchase RE that meets strict environmental standards. Under this scheme, accredited RE products are independently audited to ensure that the electricity supplied truly comes from renewable sources (wind, solar, hydro, and bioenergy). This third‑party accreditation builds consumer confidence and strengthens demand for clean energy.
Charting the Path Forward
The Green Energy Option Program marks a major shift in the Philippines’ energy strategy, moving from reliance on fossil fuels and utility constraints to a consumer-driven, renewable-focused approach. GEOP provides a framework where choice, sustainability, economic value, and environmental responsibility intersect. Its results, from cost savings and emission reductions to growing participation and industry engagement, show the program is delivering tangible benefits.
Climate Reality PH’s Energy Program Lead, Pocholo Enriquez, emphasized the need for GEOP to function independently as a market mechanism, without constant guidance to ensure its viability.
Meanwhile, Jonas Marie Dumdum, senior consultant at Nomura Research Institute, shared insights from RE suppliers: “[When addressing the issues raised by our suppliers], we need to pin down three things: [the first is] better understanding of GEOP compared to all the other programs that the demand side may have. Second is not just to drum up RE supply, but ensure that there is reliable supply. The third is really more of what is in it for companies to switch to GEOP?”
Conference discussions expressed hope that these consultations will lead to timely amendments to GEOP regulations, balancing supplier volume-matching to manage 24/7 variability and creating stronger incentives for customers to participate in voluntary RE programs.
Sources:
https://businessmirror.com.ph/2025/03/02/study-phl-businesses-reap-rewards-of-renewable-energy
https://climatereality.ph/2026/01/27/realize2026/
https://www.energy.com.ph/energy-development-corporation-lopez-re-suppliers-doe-green-energy-program
https://www.mdpi.com/1996-1073/18/17/4683
https://www.philstar.com/business/2022/10/22/2218387/government-mulls-new-rules-green-energy-option
https://www.solarpowereurope.org/news/re-source-2024-1
https://www.epa.gov/green-power-markets/utility-green-tariffs
https://www.greenpower.gov.au/about-greenpower/what-we-do/renewable-energy-accreditation