DOE Department Circular No. DC2026-01-0002 – Revised GEOP Rules Expanding End-User Access to Renewable Energy
DOE issued revised rules for the Green Energy Option Program, expanding end-user eligibility and streamlining participation to promote broader access to renewable energy in the Philippines.
2/6/20263 min read
SUMMARY
WHAT IT IS
This Circular revises and harmonizes the rules for the Green Energy Option Program, expanding access and clarifying requirements for end-users and industry participants to choose renewable energy (RE) as their power source.
End-users (≥50 kW or aggregated)
RE Suppliers
Distribution Utilities (DUs)
Electric Cooperatives
Metering Service Providers
Market Operator
Suppliers of Last Resort
Central Registration Body
RE Registrar
ERC
WHO IS AFFECTED
KEY DEADLINES
Annual threshold review: first review 12 months from effectivity.
RE Suppliers must submit annual reports by January 30.
Replacement Power sourcing: 50% RE within 3–5 years from effectivity; 100% RE thereafter.
TAKEAWAY
Eligible end-users and RE Suppliers should prepare for compliance with new requirements, including notification, contracting, and reporting.
RE Suppliers must ensure timely application for permits and readiness to meet Replacement Power sourcing targets.
KEY POINTS
Scope: Applies to End-Users, RE Suppliers, Distribution Utilities (DUs), Economic Zone Developers/Utility Enterprises, TRANSCO, Metering Service Providers (MSPs), Market Operator (MO), Suppliers of Last Resort (SOLR), Central Registration Body (CRB), RE Registrar, and the Energy Regulatory Commission (ERC).
Eligibility: End-Users with a recorded or projected monthly average peak demand of at least 50 kW may participate; End-Users below 50 kW may aggregate within a contiguous area to meet the threshold.
Aggregation: No limit to the number of End-Users in an Aggregated Group; aggregation allowed within one DU franchise area; RE Supplier acts as aggregator.
Threshold Review: DOE, with NREB and ERC, to conduct annual review of the 50 kW threshold, with phased reduction (e.g., to 20 kW, 10 kW, eventually 0 kW); initial review 12 months from effectivity.
Geographic Coverage: Open to eligible End-Users in on-grid areas of Luzon, Visayas, and Mindanao.
RE Supplier Requirements: Must secure a GEOP Operating Permit from DOE and a Retail Electricity Supplier License from ERC; permit valid for 5 years, renewable 6 months prior to expiration.
Supply Contract: GEOP Supply Contract between End-User and RE Supplier does not require ERC approval; terms not subject to DOE/ERC review except in disputes.
Billing: End-Users may choose single or dual billing; RE Supplier must provide consolidated billing reflecting all charges.
Replacement Power: RE Supplier must ensure availability; within 3-5 years from effectivity, at least 50% of Replacement Power must be from RE, thereafter 100% from RE.
Compliance Obligations: RE Suppliers must register with MO/CRB/RE Registrar, provide transparent offer sheets, ensure billing transparency, submit annual reports to DOE, and facilitate customer switching.
Penalties: Administrative fines from P100,000 to P500,000; possible suspension/revocation of permits; criminal penalties include imprisonment (1-5 years) and fines up to P100 million or twice the damages/costs avoided.
Mechanisms Introduced/Amended: Annual threshold review and reduction mechanism; GEOP Aggregation; Green Energy Auction for GEOP; RE Pool for joint supply; clarified roles and compliance/reporting requirements for all covered entities; repeals previous GEOP circulars.
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DOE Department Circular No. DC2026-01-0002
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
Risk flags and ambiguities
Suggested next actions
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Tags: Green Energy Option, Aggregation, Eligibility Threshold, RE Supplier Compliance, Replacement Power, Billing Transparency