Aboitiz Power Corporation (AboitizPower) officially broke ground on the Naga Battery Energy Storage System (BESS) project, an investment that aims to help strengthen grid reliability and support the growing energy needs of the Visayas.
The project will build a 60-megawatt standalone BESS within the Naga Power Plant Complex in Barangay Colon, Naga City, Cebu. The facility is expected to provide contingency and regulating reserve services that will support the grid’s ability to respond to fluctuations in electricity supply and demand.
A BESS is a type of energy storage that uses a set of batteries to store surplus electricity which is released when needed to augment supply or improve the quality of the electricity in the power system.
“The Department of Energy commends AboitizPower for their continued confidence in the Philippine energy future. Your investment demonstrates the innovation and sustainability that can go beyond what we have been dreaming of,” said Energy Undersecretary Mario Marasigan. “While we continuously convince and invite investment in renewable energy technologies, we need this technological support to create a reliable and efficient system.”
Built by the National Power Corporation (NAPOCOR) in the 1980s, the Naga Power Plant Complex was acquired by AboitizPower in 2018 through the government’s privatization program. The BESS project marks the site’s transformation from thermal power generation to energy storage.
In response to the Visayas’ evolving energy ecosystem, the site’s legacy coal and diesel-fired units were decommissioned and demolished, demonstrating AboitizPower’s strategy of growing and diversifying its asset portfolio in support of the Philippines’ energy transition.
“Before we can attract more investments, we must also ensure that we have the infrastructure to support them,” said Cebu Governor Pamela Baricuatro. “Projects like this 60-megawatt battery energy storage system give us greater confidence that Cebu can continue to grow while maintaining a stable and reliable power supply.”
“Naga BESS represents transformation in action. It reflects our efforts to strengthen the energy system by investing in people, infrastructure, and technology to enhance flexibility, resilience, and reliability of the grid,” added AboitizPower Transition Business Group President Celso C. Caballero III.
As more variable renewable energy capacity enters the power grid, energy storage plays an increasingly important role in maintaining grid stability. BESS, in particular, serves as fast-acting, short-term duration assets capable of rapid response to demand fluctuations, providing vital support to system operations.
The Naga BESS project is part of AboitizPower’s broader strategy of a balanced energy mix portfolio, in support of the Philippine Energy Plan. It is expected to begin commercial operations by 2027.
