Battery energy storage systems (BESS) can help the Philippines transition to more renewable and reliable energy grids, according to global professional services company GHD.
GHD, however, cautioned that despite falling costs and the growing scale of BESS making it an attractive proposition, connection challenges should not be underestimated.
BESS are large batteries that charge with excess electricity from solar or wind generators and discharge during peak demand, helping to stabilize the electrical grid. This process supports the shift towards more renewable and reliable energy grids.
Speaking at a Philippine Solar and Storage Energy Alliance (PSSEA) general assembly, Michael Wood, GHD’s technical director for energy storage, said the Philippines could learn from Australia’s experience. In Australia, BESS projects paired with solar or wind generation are already cost-competitive with coal and gas.
Australia is experiencing a boom in BESS projects, with battery output growing 86% year-on-year, according to the Australian Energy Market Operator.
Wood noted that this growth has also exposed delivery gaps, with some projects getting “stuck” due to vendor, grid connection, design, or governance issues.
Australia’s first BESS system, the Hornsdale Power Reserve in South Australia, was completed within 100 days.
“However, this project was an outlier thanks to its high profile,” Wood said. “Since then, power grids have become more complex and connection requirements are very stringent, slowing approvals.”
“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,” Wood said.
He said BESS projects are capital-intensive, and revenues are inherently uncertain when 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 said.
GHD has provided advisory, regulatory, engineering, construction, and compliance assessment services to around 100 BESS projects globally, including some of the world’s largest.
