ERC raises power grid capacities, market caps
By Ed Paolo Salting – March 18, 2025
from The Manila Times
THE Energy Regulatory Commission (ERC) on Monday announced changes to the allowed installed generating capacity (IGC) and market share limitations (MSL) for national and regional grids this year, which it said would promote free and fair competition.
IGC is the maximum amount of electricity that a generating station (power plant) can produce under specific conditions.
For 2025, the national grid’s IGC was increased to 27.10 million kilowatts (kW) from 25.57 million kW in 2024.
Among the three major regions, Luzon’s IGC was set at 19.42 million kW, up from 17.96 million kW last year.
The Visayas’ IGC, meanwhile, was cut to 3.38 million kW from the previous year’s 3.42 million kW.
For Mindanao it was 4.29 million kW, up from 4.19 million kW in 2024.
The national grid’s MSL for 2025 was set at 6.77 million kW, greater than the 6.39 million kW in 2024.
Power firms cannot run facilities with installed capacities exceeding 5.82 million kW in Luzon, up from the previous cap of 5.38 million kW. In the Visayas it will be 1.06 million kW, up from 1.03 million kW, and in Mindanao, 1.29 million kW, also bigger than 1.26 million kW last year.
Under Republic Act (RA) 9136 or the Electric Power Industry Reform Act (Epira) of 2001, no company or related group can own, operate or control more than 30 percent of the IGC of an island grid and 25 percent of the national grid.
The ERC set the 2025 IGC and MSL using ownership/control and Pmax data for generation facilities based on January to December 2024 operations.
Pmax, as defined in the 2023 Revised Certificate of Compliance Rules, is the maximum net output in megawatts (MW) that a generating unit can reliably sustain, based on the capability tests for the generating unit.
Based on records of the top power generation companies as of Dec. 31, 2024, San Miguel Corp. controlled 6.08 million kW of the national grid, or a 22.44-percent market share; followed by Aboitiz Equity Ventures, 5.89 million kW or 21.75 percent; First Gen Corp., 3.58 million kW or 13.22 percent; Manila Electric Co. (Meralco), 1.47 million kW or 5.42 percent; and Ayala Corp.,1.43 million kW or 5.28 percent.
