Philippines’ Magat hydroelectric power plant launches 24MW battery energy storage system

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Aboitiz Power, a leading energy company in the Philippines, has announced the commercial operation of a 24MW battery energy storage system (BESS) at the Magat Hydroelectric Power Plant in Ramon, Isabela. The BESS, which began participating in the reserve market on January 26, is co-located with the hydroelectric plant, enhancing its capabilities to provide ancillary services to the grid.

The Magat BESS project, developed by SN Aboitiz Power (SNAP), a joint venture between Aboitiz Power and Scatec, received the necessary certification from the national Energy Regulatory Commission on January 17 after completing testing and commissioning in December 2023. The project is part of SNAP’s commitment to clean energy and marks the company’s second completed BESS project out of a planned pipeline of 248MW in the country.

Construction of the Magat BESS began in the third quarter of 2022 following a Final Investment Decision in April of that year. The project was executed under an engineering, procurement, and construction contract with Hitachi Energy. Debt financing for the project was provided by the Bank of the Philippine Islands and China Banking Corporation.

The deployment of BESS at the Magat Hydroelectric Power Plant reflects the growing trend among major power companies in the Philippines to integrate battery storage into their portfolios. In the country’s regulated energy market, BESS offers efficient and effective solutions for providing frequency regulation and other ancillary services, which are essential for grid stability.

While the immediate focus is on the economic benefits of frequency regulation, the long-term outlook aligns with the government’s goal to achieve 50% renewable energy by 2040. President Ferdinand Marcos Jr. has highlighted the vital role of technology in the Philippine power sector, emphasizing the need for cleaner resources like solar-plus-storage to provide ‘baseload’ power.

Aboitiz Power, in line with its commitment to sustainability, has announced plans to exit coal and collaborate with the World Bank’s International Finance Corporation to explore the potential of cleaner resources for the country’s energy needs. The deployment of BESS at the Magat Hydroelectric Power Plant demonstrates the company’s proactive approach to embracing renewable energy technologies and contributing to a greener future for the Philippines.

(Source: Scatec | Energy Storage News)

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