Scatec ASA’s joint venture with Aboitiz Power has reached financial close for the 16 MW Magat (Phase 2) and 40 MW Binga battery energy storage systems (BESS) in the Philippines, paving the way for construction to commence.
The battery systems will be integrated with the Magat and Binga hydro power plants, leveraging the lucrative ancillary services reserves market. This expansion follows the success of the existing 24 MW BESS at the Magat power plant, which has been generating strong ancillary service revenues since operations began in 2024.
BESS technology plays a critical role in grid stability by responding swiftly to frequency fluctuations, providing multiple grid services, and offering cost-efficient solutions. With the Philippines’ increasing renewable energy penetration driven by government targets, ancillary services are expected to become even more vital.
“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,” said Terje Pilskog, CEO of Scatec ASA.
The projects, jointly owned by Scatec and Aboitiz Power on a 50/50 basis, will be financed through project debt under existing facilities linked to the Magat and Binga hydro power plants.
