PCC clears ABC Energy’s Alternergy wind investment

The Philippine Competition Commission (PCC) has approved ABC Energy Inc.’s acquisition of a 40% minority stake in two Alternergy wind power projects, ruling that the transaction is unlikely to substantially lessen competition in the country’s renewable energy sector.

In its decision, the PCC cited the highly fragmented structure of the renewable energy generation market, the minority nature of the investment, and existing regulatory safeguards that prevent market foreclosure.

The approval covers ABC Energy’s acquisition of a 40% equity stake in Alternergy Tanay Wind Corporation and Alabat Wind Power Corporation under an investment agreement with Alternergy Wind Holdings Corporation. Following the transaction, Alternergy Wind will retain a 60% majority stake and continue to exercise operational and management control over both projects.

ABC Energy is an investment holding company focused on energy-related ventures and is wholly owned by A Brown Company Inc. through Brownfield Holdings Inc. The two wind project companies are wholly owned subsidiaries of Alternergy Wind, which in turn is under Alternergy Holdings Corporation.

The PCC’s Mergers and Acquisitions Office (MAO) found that the nationwide market for non-auctioned renewable energy generation remains highly competitive, with around 222 market participants and no single company accounting for more than 8% of the market.

The Commission also examined potential competition issues under the government’s Green Energy Auction Program (GEAP). It noted that both Alternergy Tanay and Alabat Wind are awardees under Green Energy Auction 2, with their output already committed under 20-year Green Energy Tariff contracts, significantly reducing concerns over future auction competition. The PCC likewise observed that Alternergy Holdings will continue to make its own strategic and bidding decisions in future auction rounds.

On the supply side, the PCC found no significant risk of vertical foreclosure. Existing regulations prohibit retail electricity suppliers from sourcing more than 50% of their electricity requirements from affiliated generation companies, limiting the ability of firms to channel power exclusively to related retail entities such as ALTER RES.

The Commission also pointed to continued competition from established industry players and an expanding pipeline of about 79 renewable energy projects expected to begin commercial operations beyond 2031, which should further strengthen market competition.

Under the Philippine Competition Act, the PCC reviews mergers and acquisitions to ensure they do not substantially prevent, restrict, or lessen competition. The agency said its review process helps preserve competitive markets, provide regulatory certainty for investors, and support sustainable growth in strategic sectors such as renewable energy.