The Philippine Competition Commission (PCC) said Alternergy Holdings Corp.'s sale of a 40 percent stake in two wind power projects to ABC Energy Inc. is unlikely to curb competition, given a fragmented renewable energy market and existing regulatory safeguards against market concentration.

The antitrust regulator said Tuesday it cleared ABC Energy’s acquisition of a 40 percent minority equity stake in Alternergy Tanay Wind Corp. and Alabat Wind Power Corp., saying the transaction “is not likely to result in a substantial prevention, restriction, or lessening of competition in the nationwide generation and supply of renewable energy.”

The approval covers the investment agreement among Alternergy Wind Holdings Corp., Alternergy Tanay, Alabat Wind and ABC Energy. 

Following the transaction, Alternergy Wind will retain a 60 percent majority stake and continue to exercise operational control and management of both wind projects.

In its review, the PCC found that the nationwide market for non-auctioned renewable energy generation remains highly fragmented, with about 222 market participants and no single company controlling more than 8 percent market share.

The Commission also found little risk that the deal would affect competition in future government renewable energy auctions.

It noted that both Alternergy Tanay and Alabat Wind are awardees under the Green Energy Auction Program 2, with their output already committed under 20-year Green Energy Tariff contracts, while Alternergy Holdings will continue to make independent strategic and bidding decisions in future auctions.

The PCC likewise ruled out concerns that the transaction could restrict access to renewable power supply for retail electricity suppliers.

It pointed to existing regulations that prohibit a retail electricity supplier from sourcing more than 50 percent of its power requirements from affiliated generation companies.

“This statutory ceiling limits the parties’ ability to divert output exclusively to affiliated retail entities such as ALTER RES,” the PCC said.

The regulator added that competition will remain supported by established power producers and an expanding pipeline of about 79 renewable energy projects expected to begin commercial operations beyond 2031.

ABC Energy is a domestic holding company for energy-related investments wholly owned by A Brown Company Inc. through Brownfield Holdings Inc. 

Alternergy Tanay and Alabat Wind are wholly owned by Alternergy Wind, a subsidiary of Alternergy Holdings Corp. led by former Energy Secretary Vince Perez.