ACEN Corp., the renewable energy arm of the Ayala Group, has extended a short-term loan of up to P850 million to its wholly owned subsidiary, Palauig Solar 1 Inc., to support the rollout of a battery energy storage project in Zambales.
The funding will be used for the Palauig 1 Battery Energy Storage System (BESS), a 35-megawatt, 140-megawatt-hour facility that will be built alongside the existing Palauig Solar 1 plant. The solar facility, with a capacity of 63 MW-direct current or 50 MW-alternating current, is located in the villages of Salaza and Cauayan in Palauig.
The move highlights ACEN’s continued push to pair renewable energy generation with storage systems, a strategy increasingly seen as critical to stabilizing supply as more intermittent sources like solar enter the grid.
Battery storage allows excess power generated during peak sunlight hours to be stored and released later, helping smooth fluctuations and improve reliability.
Using an internal loan structure enables ACEN to quickly fund the project while retaining full control over execution. It also reflects a common approach among energy firms to deploy capital efficiently within their own project pipelines, particularly for projects that are already aligned with broader expansion plans.
The Palauig BESS project is expected to enhance the performance of the adjacent solar plant by reducing curtailment and optimizing energy delivery to the grid. It also positions ACEN to respond to growing demand for flexible power solutions as the Philippines transitions toward a higher share of renewable energy.
ACEN, at the end of 2025, had a total attributable renewable capacity in the country of 2,400 MW, with 57 percent already operational. Including overseas projects, the company already reached 7 gigawatts attributable green energy capacity.
