^{In photo: Palauig Solar, ACEN’s second biggest solar farm, aims to harness Zambales’ growth potential for clean energy and support the Philippines’ rising power demand. /ACEN}

Ayala-led ACEN Corp. has approved a short-term loan of up to P850 million to a wholly owned subsidiary to support the development of a battery energy storage system (BESS) project in Zambales.

In a disclosure dated May 1, ACEN said it executed the loan agreement with Palauig Solar 1 Inc., the project company behind the Palauig 1 BESS facility.

The planned project involves a 35-megawatt (MW) / 140-megawatt-hour (MWh) battery system to be located adjacent to and integrated with the existing 63 MWdc / 50 MWac Palauig Solar 1 plant in Barangays Salaza and Cauayan, Palauig, Zambales.

The financing support underscores ACEN’s continued build-out of energy storage alongside its renewable energy portfolio, as battery systems play a growing role in stabilizing output from intermittent sources such as solar.

The Palauig BESS is expected to enhance the operational flexibility and reliability of the solar facility by storing excess generation and dispatching power during periods of high demand or limited solar output.

ACEN has been scaling up its renewable energy portfolio to around 6.8 gigawatts (GW) of attributable capacity across the Philippines, Vietnam, Indonesia, India, and Australia, with a target of reaching 20 GW by 2030. As part of this expansion, the company has been embedding battery energy storage systems into its project pipeline to help firm up intermittent generation and support grid stability.

What do you think? How critical are battery storage investments like this in accelerating renewable energy integration in the Philippines?

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