Scatec’s joint venture in the Philippines, SN Aboitiz Power (SNAP), has reached financial close for two new battery energy storage system projects with a combined capacity of 80 MW and is now preparing to begin construction. The projects include a 40 MW battery system at the Binga hydropower plant under Phase 2 and another 40 MW system at the Ambuklao hydropower plant. Both sites are located in Benguet province in the northern Philippines.
SNAP is a joint venture between Scatec ASA and Aboitiz Renewables, the renewable energy arm of Aboitiz Power Corporation. With financial arrangements now completed, the company is moving ahead with construction activities, marking another important step in expanding energy storage capacity in the country.
The new battery systems will be installed alongside the existing Binga and Ambuklao hydropower plants. These batteries will mainly earn revenues from the reserves market by providing ancillary services to the power grid. Ancillary services are essential for maintaining grid stability, especially by responding quickly to changes in electricity demand and supply.
These projects build on SNAP’s earlier success with battery storage in the Philippines. In 2024, a 24 MW battery energy storage system was commissioned at the Magat hydropower plant. Since becoming operational, this facility has been delivering steady revenues through ancillary services. In addition to the newly announced projects, SNAP is currently constructing more battery systems, including 40 MW at the Binga plant and 16 MW at the Magat plant. These are expected to begin commercial operations later this year.
Once all projects under construction and operation are counted, SNAP’s total battery energy storage capacity in the Philippines will reach 160 MW. This growing portfolio reflects the company’s focus on combining hydropower and battery storage to deliver flexible and reliable grid services.
Battery energy storage systems are well-suited for ancillary services because they can respond very quickly to real-time grid frequency changes. They are also flexible, capable of providing multiple grid services, and increasingly cost-competitive compared to traditional solutions. As the Philippines continues to add more solar and wind power under the government’s renewable energy targets, the need for such fast and flexible grid support is expected to grow.
Scatec CEO Terje Pilskog said the company is excited to start construction of the two new battery projects and highlighted that the additional capacity will significantly expand Scatec’s operational battery portfolio in the Philippines. He added that the projects will strengthen the company’s position as a leading provider of ancillary services in the country.
The projects are owned by SNAP and will be financed through project debt under existing lending facilities arranged with SNAP’s Philippine-based lenders.
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