Aboitiz Power Corp. subsidiary SN Aboitiz Power Group (SNAP) has secured financing from major banks for the expansion of its battery energy storage system (BESS) projects. The financing will fuel the development of two large-scale BESS facilities, set to enhance grid reliability and support the country’s renewable energy (RE) ambitions.
In a disclosure to the Philippine Stock Exchange, SNAP said that the Bank of the Philippine Islands (BPI) and China Banking Corp. will jointly finance the 16 MW Magat BESS Phase 2, while BPI and Banco de Oro Unibank Inc. (BDO) will back the 40 MW Binga BESS. While the exact loan amounts were not disclosed, these projects are expected to be co-located with SNAP’s existing hydroelectric plants, the 360 MW Magat and the 140 MW Binga.
SNAP’s BESS expansion is expected to strengthen the country’s energy grid by providing crucial storage capacity, a key factor in integrating renewable energy sources and ensuring the stability of power supply. These projects are in line with the country’s broader goal to meet its renewable energy targets, furthering the nation’s shift to a cleaner and more sustainable energy future.
“BESS will provide much-needed storage capacity to support the integration of renewable energy and improve grid reliability. This also aligns with the Philippines’ efforts to meet the country’s renewable energy targets,” said Joseph Yu, SNAP president and CEO.
The projects, which are set to be completed by 2026, underscore SNAP’s commitment to driving innovative energy solutions. The engineering, procurement, and construction contracts for both the Magat BESS Phase 2 and Binga BESS have been awarded to GEDI China Energy, a subsidiary of China Energy Engineering Group.
This new push for energy storage follows the commercial operation of SNAP’s first BESS project, the 24 MW Magat BESS, which began in January 2024. The BESS projects will help stabilize the grid by providing ancillary services to the energy market.
SNAP is a joint venture between Aboitiz Power and Norwegian renewable energy producer SCATEC ASA. Aboitiz Power is actively expanding its renewable energy portfolio as part of a strategy to add 3,600 MW of new RE capacity by 2030, ultimately reaching a total of 4,600 MW of renewable energy to complement its thermal plants and ensure energy reliability.
As the Philippines accelerates its renewable energy development, these BESS projects could play a pivotal role in the country’s energy transition, driving commercial opportunities while advancing sustainability goals.
