Scatec ASA and Aboitiz Power have finalized financing for their battery energy storage projects in the Philippines and are set to begin construction. The projects include a 16 MW battery system at the Magat hydropower plant (Phase 2) and a 40 MW system at the Binga hydropower plant. These battery storage systems will support the grid by providing ancillary services, a market that offers strong revenue potential.
They build on the success of the existing 24 MW battery at Magat, which has been delivering reliable revenues since it began operations in 2024. Battery storage is ideal for stabilizing the power grid because it responds quickly to frequency changes, supports multiple grid functions, and is cost-effective. As the Philippines increases its use of renewable energy to meet government targets, the demand for ancillary services will continue to grow.
Terje Pilskog, CEO, stated “We are very excited to start construction of the new BESS projects in the Philippines. With the new batteries we will more than triple our storage capacity to 80 MW, increasing the value of our hydro power plants and strengthening our position as a leading provider of ancillary services in the country. Ancillary services in the Philippines is a highly attractive source of revenues and we will continue to expand our storage capacity taking an even larger share of the market over time.”
Scatec and Aboitiz Power each hold a 50% stake in the projects, which will be funded through project debt from existing financing tied to the Magat and Binga hydropower plants.
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