Aboitiz Power Corporation (AboitizPower) has officially commenced construction of its 60 MW Naga Battery Energy Storage System (BESS) in Cebu, marking another milestone in the company’s efforts to strengthen grid reliability and support the Philippines’ evolving energy transition.
The standalone battery energy storage facility will be developed within the Naga Power Plant Complex in Barangay Colon, Naga City, Cebu. Once operational, the project will provide contingency and regulating reserve services, enabling the Visayas grid to respond more effectively to fluctuations in electricity supply and demand while improving overall system reliability.
The groundbreaking ceremony was attended by Energy Undersecretary Mario Marasigan, Cebu Governor Pamela Baricuatro, and senior executives from AboitizPower.
According to the company, the project represents the transformation of the Naga Power Plant Complex from conventional thermal power generation to modern energy storage infrastructure. Originally built by the National Power Corporation (NAPOCOR) in the 1980s, the facility was acquired by AboitizPower in 2018 under the Philippine government’s privatization programme. As part of its transition strategy, the site’s legacy coal- and diesel-fired generating units have been decommissioned and demolished to make way for cleaner energy infrastructure.
Energy storage systems are expected to play an increasingly important role in the Philippines’ power sector as renewable energy capacity continues to expand. Battery Energy Storage Systems (BESS) provide rapid-response services by storing surplus electricity and discharging it during periods of high demand or grid instability, helping maintain power quality and operational flexibility.
Speaking at the event, Energy Undersecretary Mario Marasigan said the investment reflects AboitizPower’s continued confidence in the Philippine energy sector and highlighted the importance of battery storage technologies in supporting the country’s growing renewable energy capacity and building a more reliable electricity system.
Cebu Governor Pamela Baricuatro noted that investments in energy infrastructure are essential to sustaining economic growth, adding that projects such as the Naga BESS will help ensure a stable and dependable electricity supply for future investments in the province.
Celso C. Caballero III, President of AboitizPower’s Transition Business Group, said the project demonstrates the company’s commitment to strengthening grid resilience through strategic investments in infrastructure, technology, and energy storage solutions.
The Naga BESS forms part of AboitizPower’s broader strategy to develop a balanced energy generation portfolio aligned with the Philippine Energy Plan. The project is scheduled to commence commercial operations in 2027.
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