Ramon S. Ang, Chairman and CEO, San Miguel Corporation. His leadership drives innovation and growth across key industries—food and beverage, infrastructure, power, and investments—reinforcing his profound impact on the Philippine economy.
In a significant shift within the Philippine energy industry, San Miguel Corporation (SMC), under the leadership of President and CEO Ramon S. Ang, has surpassed Aboitiz Equity Ventures Inc. (AEV) to become the nation’s largest power producer.
As of December 31, 2024, SMC controls 22.44% of the country’s total power generation capacity, equivalent to 6,079.6 megawatts (MW), overtaking AEV’s 21.75% share (5,894 MW).
This milestone signifies a transformation in the country’s power landscape, setting the stage for increased competition, investment in infrastructure, and changes in energy policy.
SMC’s Aggressive Expansion and Market Dominance
San Miguel’s rise to the top is the result of years of aggressive expansion, strategic diversification, and investment in both traditional and renewable energy sources.
Through its subsidiary, San Miguel Global Power Holdings Corp. (SMGP), the company has solidified its position in the energy sector by increasing its generation capacity and broadening its energy mix.
As of September 2024, SMGP’s capacity had grown to 5,356 MW, covering 21% of the national grid. This expansion is underpinned by a balanced portfolio, which includes:
- Natural gas, coal, and hydroelectric powerto provide reliable base-load electricity.
- Battery Energy Storage Systems (BESS)to improve grid stability and support renewable integration.
- A growing investment in renewable projects, positioning SMC to meet future energy transition goals.
Beyond infrastructure development, SMC has also been financially strategic, raising $100 million through senior perpetual capital securities to finance debt management and fund pre-development costs for renewable energy projects.
The company is also developing 4,000 MW of new projects, including a 1,320-MW combined cycle power facility in Batangas, which was 98.2% complete by the third quarter of 2024.
“Our focus is not just on being the largest power producer, but on ensuring energy reliability and sustainability for the Philippines,” Ang said. “We are committed to delivering affordable and stable power while driving the transition to a cleaner energy future.”
Aboitiz: A Century-Old Legacy Faces Stiff Competition
For years, AboitizPower, the energy arm of Aboitiz Equity Ventures (AEV), led the Philippine power industry through renewable energy investments, efficient operations, and a diversified portfolio.
The company has long been at the forefront of integrating solar, hydroelectric, and geothermal power into the national grid.
Despite losing its top position, AboitizPower remains a dominant force, actively expanding its clean energy projects to align with the Philippine government’s target of achieving 35% renewable energy by 2030.
In 2024 alone, the company energized 512 MW of new clean energy capacity, including:
- 159 MWp Laoag Solar Plant
- 94 MWp Cayanga Solar Plant
- New geothermal developments in Albay
Under the leadership of Sabin M. Aboitiz, AEV’s Group President and CEO, the company is doubling down on its renewable energy expansion strategy.
Financially, AboitizPower recorded an 11% increase in EBITDA, reaching ₱66.7 billion, thanks to higher portfolio margins and increased contributions from its renewable energy projects.
While SMC has overtaken AEV in total market share, AboitizPower’s strategic focus on renewables and energy innovation positions it to reclaim market dominance in the long run.
Impacts on the Philippine Energy Landscape
The shift in leadership from AEV to SMC is expected to reshape the country’s energy infrastructure and regulatory framework while driving economic growth.
- Increased Competition and Innovation
SMC’s expanded market share will intensify competition, prompting other energy firms, including Meralco PowerGen and First Gen, to accelerate their clean energy investments.
- Grid Stability and Energy Security
SMC’s focus on battery energy storage and diversified fuel sources will:
- Reduce power outagesby providing stable energy reserves.
- Lower electricity costsby reducing dependence on imported fuels.
- Support large-scale renewable energy integration, enhancing the sustainability of the national grid.
- Economic Growth and Industrial Expansion
A reliable and affordable power supply is essential for businesses and foreign investment. With SMC’s increased capacity, the Philippines can expect:
- More stable electricity rates, benefiting manufacturing, IT-BPO, and heavy industries.
- Attraction of multinational companieslooking for energy-secure locations.
- Improved electrification in rural areas, supporting economic development in underserved communities.
- Government Policy and Regulatory Adjustments
SMC’s dominance could prompt regulatory changes to maintain a competitive market and encourage sustainable practices. Potential policies include:
- Stronger renewable energy mandatesto balance the mix between fossil fuels and green energy.
- More incentives for energy storage projects, ensuring better grid stability.
- Pricing transparency and competition safeguardsto prevent market monopolization.
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The Future of the Philippine Energy Sector
While San Miguel Corporation currently leads, the battle for market dominance is far from settled. AboitizPower is aggressively expanding its renewable energy footprint, and competitors like Meralco PowerGen and First Gen are also scaling up their investments.
With the Philippines’ growing demand for clean and affordable energy, the coming years will determine which power player can lead the country toward a sustainable and economically vibrant future.
