A push for renewable energy in the healthcare sector
Public hospitals in the Philippines are looking to integrate sustainability into their operations, as they recognize the significant risks climate change poses to public health and economic wellbeing.
The healthcare industry is focusing on transitioning to renewable energy, given its significant energy consumption, which contributes around five percent of global greenhouse gas emissions. To achieve this, the Green Energy Option Program (GEOP) offers a pathway for the healthcare system to access 100 percent renewable energy without upfront costs.
GEOP allows entities with a monthly average peak demand of 100 kilowatts and above for the past 12 months to switch from being a captive market of a distribution utility or electric cooperative to sourcing power directly from a renewable energy supplier. With GEOP, entities have the power to choose renewable energy over fossil fuels, allowing them to source 100 percent power directly from a renewable energy supplier.
The Department of Energy (DOE), the Climate Change Commission (CCC), and the Department of Health (DOH) are collaborating to expedite GEOP access for public hospitals. This collaboration emerged from a recent roundtable discussion on greening the healthcare sector, organized by the Asian Development Bank (ADB) with support from Climate Reality Philippines.
Why go green?
The benefits of this transition are multifaceted. Dr. Eduardo Banzon, principal health specialist at ADB, underscored the need to "futureproof" healthcare investments by adapting facilities to the challenges of climate change.
During the discussion, Dr. Banzon also shared the bank’s vision to support the climate change adaptation and mitigation needs of developing countries.
“Now that climate change is considered by many as the largest threat to public health in the world, we need to respond to that. The [ADB] wants to become a climate bank. And we have marching orders to have $100 billion of financing available to our developing member countries by 2030. There is a shift now in ADB. All of our projects need to have a climate assessment,” he said.
This is a welcome pronouncement given the growing demand for multilateral development banks and development finance institution systems to align their operations with global climate goals. Development and financial institutions should understand that climate resilience and the low-carbon transition are not trade-offs, but investments in a more secure, healthy, and prosperous future.
From an economic standpoint, renewable energy offers cost savings and a more sustainable financial model for hospitals. Angelica David, energy policy manager at the Institute for Climate and Sustainable Cities, pointed out that transitioning away from fixed-rate energy sources leads to stabilized operational expenses. These savings can then be redirected to patient care and facility maintenance.
GEOP: Fast lane to renewable energy
The growing demand for renewable energy in healthcare aligns with the consumer-centric mechanisms outlined in the Renewable Energy Act of 2008. Ian Soqueño, energy program lead at Climate Reality Philippines, highlighted GEOP as a way for hospitals to source 100 percent renewable energy at no upfront cost. The program acts as a stepping stone toward energy self-sufficiency, reduced emissions, and financial savings.
To date, four hospitals were recorded to have switched to renewable energy through GEOP, namely: Asociacion Benevola De Cebu, Mercado General Hospital Sta. Rosa, Mercado Ambulatory and Surgical Centers, and Urology Center of the Philippines.
Challenges and collaboration
Despite the growing interest in GEOP, a key challenge lies in the current limited capacity on the supply side.
To address this gap, Climate Reality Philippines is working with the DOE on policy amendments for GEOP that will ensure easier registration of renewable energy suppliers within the program.
Moving forward, multi-stakeholder collaboration is key to accelerating hospital access to renewable energy. During the roundtable discussion, the DOH sought technical assistance from DOE and CCC for capacity building and energy audits for healthcare facilities.
The DOE, on the other hand, is committed to implementing policies and initiatives to bolster the country’s renewable energy infrastructure, benefiting both public and private sectors.
For Climate Reality Philippines, civil society will continue to play a role in aligning sustainability practices of industries with renewable energy principles. This year, the organization will expand its RE Energize PH program to promote GEOP across various sectors, including healthcare, telecommunications, academia, and tourism.
It is also set to conduct more regional conferences in the coming months, focusing on matchmaking eligible end-users and renewable energy suppliers, which are slated this year.