The Philippines can gain key insights from Australia’s battery energy storage system (BESS) boom, but it must also prepare for the technology’s connection and challenges, according to global professional services firm GHD.

Speaking at the Philippine Solar and Storage Energy Alliance (PSSEA) General Assembly, Michael Wood, GHD’s Technical Director for Energy Storage, said that BESS projects paired with solar or wind generation are now cost-competitive with coal and gas in Australia, which is also currently experiencing rapid growth in battery deployment.

However, he made sure to warn that this expansion has also revealed delivery issues, which the country must be prepared to face.

He cited the Hornsdale Power Reserve in South Australia, which was completed within 100 days in 2017 following a public commitment by Elon Musk, as an outlier. “However, this project was an outlier thanks to its high profile,” he said. “Since then, power grids have become more complex and connection requirements are very stringent, slowing approvals.”

Wood added that safety concerns have also contributed to delays. “Large-scale BESS fires have also raised concerns from communities and regulators. While this issue is being seriously addressed by the industry, it has also contributed to project delays,” he noted.

He also emphasized the importance of sound policy and financial structure to ensure the success of BESS in the Philippines.

“BESS projects are also very capital-intensive but revenues are inherently uncertain when the generation from renewable sources is variable. Getting energy policies right will be crucial for the Philippines to make BESS projects attractive for private capital,” Wood concluded.

Battery energy storage systems are used to store excess electricity from solar or wind energy and release it during periods of high demand. This helps stabilize the grid and support renewable energy integration.

GHD has provided advisory, regulatory, engineering, construction, and compliance services to around 100 BESS projects globally, including some of the world’s largest.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.