AboitizPower expands battery storage to stabilize Visayas grid

CEBU, Philippines — Aboitiz Power Corp. is expanding its battery storage footprint in Cebu with a second energy storage facility, a move aimed at shoring up the Visayas grid as recurring yellow alerts expose the region’s vulnerability to power shortages and threaten the rapid growth of its manufacturing, tourism and data center industries.

The company on Wednesday, July 1, 2026, broke ground on the 60-megawatt Naga Battery Energy Storage System (BESS) in the City of Naga, Cebu. The standalone facility, which can be expanded to as much as 120 megawatt-hours, is scheduled to begin commercial operations by October 2027.

The project follows AboitizPower’s first battery facility in Cebu, located at the East Asia Utilities Corp. (EAUC) complex in Mactan, which is mechanically complete and awaiting final regulatory clearances before going online.

A battery energy storage system (BESS) functions like a giant power bank for the grid, storing excess electricity and releasing it during temporary supply shortfalls to help prevent yellow alerts and potential rotational brownouts.

“This is the second project that we have in Cebu and in the Visayas,” said Rhea Navarro, regional chief operating officer for the Visayas of AboitizPower’s Transition Business Group. “Our mission is to respond to the needs of the grid and support the growing demand in the region.”

Department of Energy (DOE) undersecretary Mario Marasigan said additional battery storage projects are critical as the Visayas grid grapples with tighter power reserves and increasing electricity demand from industrial estates, business process outsourcing firms and emerging data centers.

“We are looking at a minimum of 200 megawatts of additional battery storage technology for the entire Visayas,” Marasigan said during the groundbreaking ceremony.

The Visayas grid has been placed under a series of yellow alerts since March due to thinning reserves and unplanned outages of generating units.

A yellow alert is declared when operating reserves fall below the required level, raising the risk of power interruptions if additional plants suddenly go offline.

Marasigan said battery storage facilities can help address those concerns by instantly injecting electricity into the grid when supply fluctuations occur.

“One of the concerns today is the recurring yellow alerts. If we have more battery facilities, we can reduce those occurrences,” he said.

Unlike conventional power plants that require time to ramp up generation, battery storage systems can respond within milliseconds, making them particularly useful in stabilizing the grid and supporting ancillary services.

The Naga facility will operate independently and is not attached to a generating plant. It will store excess electricity from the grid during periods of low demand and discharge power when reserves become tight, functioning much like a large-scale power bank.

The project also marks the transformation of the Naga Power Plant Complex from a thermal generation site into an energy storage hub. The coal and diesel-fired units at the facility have already been decommissioned and demolished as part of AboitizPower’s strategy to diversify its portfolio and support the country’s energy transition.

Built by the former National Power Corp. in the 1980s, the Naga complex was acquired by AboitizPower in 2018 under the government’s privatization program.

“Naga BESS represents transformation in action,” said Celso Caballero III, president of AboitizPower’s Transition Business Group. “It reflects our efforts to strengthen the energy system by investing in people, infrastructure and technology to enhance the flexibility, resilience and reliability of the grid.”

DOE data show around 50 megawatts of battery storage capacity are currently operating in the Visayas, with another 350 to 400 megawatts under development by various investors.

As more solar and renewable energy projects come online, battery systems are expected to play an increasingly important role in balancing intermittent generation and ensuring reliable electricity supply across the region.