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Brix Lelis - The Philippine Star
February 19, 2025 | 12:00am
MANILA, Philippines — A joint venture between Aboitiz Power Corp. and Oslo-listed Scatec has secured financing from major local banks for its battery energy storage system (BESS) projects across Luzon.
AboitizPower said in a disclosure that SN Aboitiz Power Group (SNAP) signed a credit facility with Bank of the Philippine Islands (BPI), China Banking Corp. and BDO Unibank Inc.
Under the deal, BPI and Chinabank will provide the capital for the 16-megawatt Magat BESS Phase 2 in Isabela, while BPI and BDO will bankroll the 40-MW Binga BESS in Benguet.
With completion targeted by 2026, the projects will be strategically located alongside SNAP’s Magat and Binga hydroelectric power plants.
The parties have yet to disclose the loan amount.
“We are proud to reach these milestones in the development of our energy portfolio. SNAP is scaling up its BESS initiatives with Magat BESS Phase 2 and the first BESS in Benguet,” SNAP president and CEO Joseph Yu said.
A BESS is a type of technology that stores electricity from power plants or the power grid for various applications such as grid stability, energy efficiency and renewable energy (RE) integration.
Yu said these projects support the country’s RE targets while underscoring SNAP’s commitment to offering “innovative and sustainable energy solutions.”
The company has tapped GEDI China Energy, a subsidiary of China Energy Engineering Group, to be the engineering, procurement and construction contractor for both Magat BESS Phase 2 and Binga BESS.
SNAP’s first energy storage project, the 24-MW Magat BESS, started commercial operations in the reserve market for ancillary services in January last year.
As a joint venture, SNAP leverages the combined expertise of AboitizPower and Scatec in renewable power development and generation.
Based in Norway, Scatec develops and operates RE plants in emerging markets, with its portfolio consisting of 4.6 gigawatts of projects in operation and under construction across four continents.
AboitizPower, on the other hand, holds the Aboitiz Group’s investments in power generation, distribution and retail electricity services.
The company intends to further invest in renewables in line with efforts to expand its clean energy capacity to 4,600 MW by 2030.
