ACEN Corporation has secured a PHP 2.925-billion project financing facility to support the development of a battery energy storage project in Zambales and refinance a portion of its existing project costs.

In a disclosure dated June 4, ACEN said its subsidiaries Palauig Solar 1 Inc. and Gigasol2, Inc. completed the signing of the financing agreement with the Bank of the Philippine Islands (BPI) as lender and BPI Asset Management and Trust Corporation as collateral trustee.

The proceeds will partly finance the Palauig 1 Energy Storage System (ESS) Project, a planned 35-megawatt (MW) / 140-megawatt-hour (MWh) battery storage facility that will be integrated with the existing Palauig 1 Solar Power Plant in Zambales.

The battery facility will be located adjacent to the 63 MWdc / 50 MWac solar power plant in Barangays Salaza and Cauyan in the municipality of Palauig. Together, the projects are intended to operate as an integrated solar-and-storage facility.

Battery energy storage systems store electricity for use at a later time. When paired with solar plants, batteries can absorb excess generation during periods of strong sunlight and discharge the stored energy when electricity demand rises or solar output declines.

ACEN said part of the financing will also be used to refinance or repay advances previously provided by shareholders for the construction and development of the Palauig 1 Solar Power Plant and the Palauig 1 ESS Project.

The financing supports the continued expansion of energy storage technologies, which are increasingly being deployed alongside renewable energy projects to improve reliability and flexibility.

Unlike solar generation, which depends on weather conditions and daylight hours, battery systems can release stored electricity when needed, helping stabilize power supply and maximize the use of renewable energy.

The project financing agreement was signed by Palauig Solar 1 Inc. as borrower, Gigasol2, Inc. as share collateral grantor, BPI as lender, and BPI Asset Management and Trust Corporation as collateral trustee.

As developers continue to pair renewable energy projects with battery storage, how significant will energy storage be in improving the reliability and flexibility of the country’s power system?

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