Scatec ASA’s joint venture with Aboitiz Power in the Philippines has achieved financial close and is set to begin construction on the 16 MW Magat (Phase 2) and 40 MW Binga battery energy storage systems (BESS).
The battery systems will be integrated with the Magat and Binga hydro power plants, capitalizing on the lucrative ancillary services reserves market. This new capacity builds on the success of the existing 24 MW BESS connected to the Magat power plant, which has been generating strong ancillary services revenue since its operational launch in 2024. The projects are jointly owned by Scatec and Aboitiz Power in the Philippines, with financing provided through project debt under existing facilities for the Magat and Binga hydro power plants.
Batteries are ideal for ancillary services due to their quick response times, ability to perform multiple grid services, and cost-effectiveness. As the Philippines increases its renewable energy capacity to meet ambitious government targets, ancillary services will become increasingly 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. 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,” said CEO Terje Pilskog.
