SN Aboitiz Power Group (SNAP), a joint venture of Scatec of Norway and Aboitiz Power Corp., said Tuesday it secured financing from three local banks for the expansion of its battery energy storage systems (BESS) in Magat, Isabela and Binga, Benguet.
Aboitiz Power said in a disclosure to the Philippine Stock Exchange that a ceremonial signing was held on Feb. 17, 2025 between SNAP and Bank of the Philippine Islands (BPI), China Banking Corp. (Chinabank) and BDO Unibank Inc.
The BESS projects will be co-located with the Magat hydroelectric power plant in Isabela and the Binga hydroelectric plant in Benguet.
BPI and Chinabank are set to finance the 16-megawatt (MW) Magat BESS Phase 2, while BPI and BDO will provide financing for the 40-MW Binga BESS.
“We are proud to reach these milestones in the development of our energy portfolio,” said Joseph Yu, SNAP president and chief executive.
“SNAP is scaling up its BESS initiatives with Magat BESS Phase 2 and the first BESS in Benguet. BESS will provide much-needed storage capacity to support the integration of renewable energy and improve grid reliability,” Yu said.
A BESS is a type of energy storage system that uses a set of batteries to store electrical energy from the grid and releases it when needed to augment supply or improve power quality.
It helps stabilize the grid by managing fluctuations in renewable energy generation, ensuring a more reliable and efficient electricity system.
Yu said this also aligns with the Philippines’ efforts to meet the country’s renewable energy targets of 35-percent RE share in the generation mix by 2030.
SNAP’s upcoming BESS projects are expected to be completed by 2026. The engineering, procurement and construction (EPC) contracts for both Magat BESS Phase 2 and Binga BESS were awarded to GEDI China Energy, a subsidiary of China Energy Engineering Group.
SNAP’s first energy storage project, the 24-MW Magat BESS, began commercial operation in the reserve market for ancillary services in January 2024.