Aboitiz, SMC, FirstGen lead power generation

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    Aboitiz Power Corp. had the biggest share in installed generating capacity in the entire country as of October last year.

    A report of the Department of Energy (DOE) showed Aboitiz Power had an installed generating capacity of 4,973.4 megawatts (MW) equivalent to 21.3 percent of the total 23,409.7 MW.

    San Miguel Power Corp. and First Gen Corp. followed in the second and third spots with 4,856 MW (20.7 percent) and 3,567.8 MW (15 percent), respectively.

    Government through Power Sector Assets and Liabilities Management Corp. (PSALM) still has and 11 percent market share remaining equivalent to 2,462.9 MW.

    DOE said for the period, no power generation entity has exceeded the installed generating capacity and market share limitation of 25 percent for the national grid.

    For the Luzon grid, San Miguel Power Corp. cornered 4,556 MW or 28 percent of the 16,044 MW total installed capacity in the region.

    It is followed by Aboitiz Power with 3,401.7 MW or 21 percent, First Gen with 2,518 MW or 16 percent) and PSALM with 1,615.8 MW or 10 percent. No market participant in the region have also breached the 30 percent market share limit.

    For the Visayas grid, First Gen led with 941.5 MW or 28 percent of the total installed generating capacity of 3,366.6 MW.

    Aboitiz Power followed with 22 percent or 730.8 MW installed generating capacity while Global Business Power secured 18 percent or 605.7 MW. Also, no generating company in the region exceeded the market share limitation of 30 percent.

    In the Mindanao grid, PSALM still holds the main portion of the power generation business with an installed generating capacity of 847.1 MW or a 21.2 percent share in the total installed generating capacity of 3,999.1 MW in the region.

    Aboitiz Power followed with 840.9 MW or 21 percent as Alsons Power and AC Energy trailed with 480.2 MW or 12 percent and 454.2 MW or 11 percent, respectively. None of the market participants in Mindanao exceeded the market share limitation of 30 percent.

    DOE said that the current Philippine power market concentration is moderate based on a Herfindahl-Hirschman index (HHI) computation of 1,982 “and quite far from a monopoly.”
    Luzon, Visayas and Mindanao grids also indicated a moderately concentrated market having HHI of 1,786, 1,828 and 1,420 respectively.

    Markets with HHI of less than 1,500 are considered to be a competitive marketplace while those with over 1,500 to 2,500 are moderately concentrated marketplace and a count of over 2,500 is tagged as a highly concentrated marketplace. – Jed Macapagal