ERC imposes power market share limits for 2026

MANILA, Philippines – Local power generation firms are not allowed to operate an energy portfolio exceeding 7.05 gigawatts nationwide, as energy regulators have reduced the allowable installed capacity for 2026.

For this year, the Energy Regulatory Commission (ERC) said the national grid’s maximum installed generating capacity was 28,197.05 megawatts (MW), down slightly from last year’s 28,390.07 MW.

The ERC has limited the installed generating capacity for Luzon to 20,422.8 MW, Visayas to 3,478.3 MW, and Mindanao to 4,295.9 MW.

READ: DOE, ERC policies must be checked, too amid high costs, brownouts

Each power company thus cannot exceed a market share of 7,049.26 MW in the national grid, a slight drop from last year’s 7,097.52 MW.

Generation companies are likewise not allowed to add more than 6,126.84 MW in Luzon; 1,043.5 MW in the Visayas; and 1,288.78 MW in Mindanao.

Under the law, power generation groups are not allowed to own, operate or control over 30 percent of the installed generating capacity of a grid and no more than 25 percent of the national installed generating capacity.

The adjusted caps will remain in effect until the next adjustment, which may be announced on or before March 15 of next year or as the need arises.

The commission said this was meant to ensure a level playing field among industry players.

ERC Chair Francis Saturnino Juan also said that the figures would allow for better planning and monitoring of the power sector, particularly with the deployment of more renewable energy facilities and battery energy storage systems.

“Healthy competition in the power sector is essential to ensuring reliable electricity supply and protecting consumers from unreasonable prices,” Juan said in a statement.

“The Philippine energy sector continues to expand and modernize. This Resolution allows the ERC to more accurately reflect the actual operating capacities of power plants nationwide, while ensuring that competition remains fair, transparent and beneficial to consumers,” he added. INQ