Aboitiz Power Corporation has broken ground on a 60-megawatt battery energy storage system (BESS) in Naga City, Cebu, a project aimed at strengthening grid reliability and supporting the growing energy needs of the Visayas.

The Naga BESS will be built as a standalone facility within the Naga Power Plant Complex in Barangay Colon. AboitizPower said the project is expected to provide contingency and regulating reserve services, which help the grid respond to fluctuations in electricity supply and demand.

The project comes as the Visayas grid experienced several yellow alerts throughout June, according to advisories from the National Grid Corporation of the Philippines. A yellow alert is issued when the grid’s operating margin is insufficient to meet its contingency requirement, meaning power supply may still be enough to meet demand but reserves are already thin.

A battery energy storage system, or BESS, stores surplus electricity in batteries and releases it when needed. It can help augment supply, improve power quality, and provide fast-response support to the grid.

Energy Undersecretary Mario Marasigan said storage investments are needed as the country continues to attract renewable energy projects.

“While we continuously convince and invite investment in renewable energy technologies, we need this technological support to create a reliable and efficient system,” Marasigan said.

Cebu Governor Pamela Baricuatro said the project would support the province’s growth by helping maintain stable power supply.

“Before we can attract more investments, we must also ensure that we have the infrastructure to support them,” Baricuatro said.

“Projects like this 60-megawatt battery energy storage system give us greater confidence that Cebu can continue to grow while maintaining a stable and reliable power supply,” she added.

The Naga Power Plant Complex was built by the National Power Corporation in the 1980s and acquired by AboitizPower in 2018 through the government’s privatization program.

AboitizPower said the site’s legacy coal and diesel-fired units have since been decommissioned and demolished, with the BESS project marking the complex’s shift from thermal power generation to energy storage.

“Naga BESS represents transformation in action. It reflects our efforts to strengthen the energy system by investing in people, infrastructure, and technology to enhance flexibility, resilience, and reliability of the grid,” AboitizPower Transition Business Group President Celso Caballero III said.

The company said storage will play a larger role as more variable renewable energy capacity enters the power grid. Battery systems can respond quickly to demand fluctuations, making them useful in supporting system operations.

The Naga BESS is part of AboitizPower’s broader balanced energy mix strategy in support of the Philippine Energy Plan. It is expected to begin commercial operations by 2027.

Can more battery storage projects help ease reserve constraints and strengthen grid reliability in the Visayas?

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