Advent Energy targets 30% market share in Mindanao
By Gabriell Christel Galang – Dec 31, 2024 08:57 AM
from Manila Bulletin
Advent Energy, Inc., an energy solutions provider and subsidiary of Aboitiz Power Corporation, aims to capture a 30 percent market share in the Mindanao region.
James Yu, Aboitiz Power first vice president and head of retail, explained that despite hurdles such as educating the market and upgrading customer meters, the company remains optimistic about expanding its services to Mindanao consumers.
“The business, for the past six months, has been trying to educate the market because it opened up, but in reality, people don’t know how it works. Still, we’re very optimistic for 2025,” Yu told reporters.
“A key challenge will be upgrading the meters of smaller customers to comply with the Retail Competition and Open Access (RCOA) scheme,” he added.
RCOA is a government-mandated provision under the Electric Power Industry Reform Act (EPIRA) that allows contestable consumers to choose their power source.
While only a few clients have switched to Advent Energy’s services so far, Yu aims to increase the company’s market share, mirroring its success in Luzon and Visayas.
“Visayas and Luzon is basically a saturated market. There are almost 4,000 megawatts (MW) of contestable customers, and they’re almost mature… When I say this literally, Luzon and Visayas are 10 years ahead of Mindanao.”
He added that the two regions achieved market growth through customer expansion, including building two additional facilities.
“They can also choose to work with us or with someone else. That’s growth in the market. The economy continues to grow and the demand for interest is going up,” Yu said.
In addition to increasing its presence in Mindanao, Advent Energy plans to develop more renewable energy (RE) projects, specifically solar power, with a goal of building 50 to 60 MW of capacity each year.
According to Yu, these capacity-building projects would be worth around P1.8 billion.
Advent Energy, Inc., an energy solutions provider and subsidiary of Aboitiz Power Corporation, aims to capture a 30 percent market share in the Mindanao region.
James Yu, Aboitiz Power first vice president and head of retail, explained that despite hurdles such as educating the market and upgrading customer meters, the company remains optimistic about expanding its services to Mindanao consumers.
“The business, for the past six months, has been trying to educate the market because it opened up, but in reality, people don’t know how it works. Still, we’re very optimistic for 2025,” Yu told reporters.
“A key challenge will be upgrading the meters of smaller customers to comply with the Retail Competition and Open Access (RCOA) scheme,” he added.
RCOA is a government-mandated provision under the Electric Power Industry Reform Act (EPIRA) that allows contestable consumers to choose their power source.
While only a few clients have switched to Advent Energy’s services so far, Yu aims to increase the company’s market share, mirroring its success in Luzon and Visayas.
“Visayas and Luzon is basically a saturated market. There are almost 4,000 megawatts (MW) of contestable customers, and they’re almost mature… When I say this literally, Luzon and Visayas are 10 years ahead of Mindanao.”
He added that the two regions achieved market growth through customer expansion, including building two additional facilities.
“They can also choose to work with us or with someone else. That’s growth in the market. The economy continues to grow and the demand for interest is going up,” Yu said.
In addition to increasing its presence in Mindanao, Advent Energy plans to develop more renewable energy (RE) projects, specifically solar power, with a goal of building 50 to 60 MW of capacity each year.
According to Yu, these capacity-building projects would be worth around P1.8 billion.
