Philippines Utility Shifts From Coal to Batteries

Aboitiz Power Corporation is decommissioning a coal plant in the City of Naga, Cebu, Philippines and building a 60-megawatt battery energy storage system in its place. The company broke ground on the project July 1, aiming to address chronic reliability issues on the Visayas power grid and integrate more renewable energy. This new facility, with an initial 120 megawatt-hour capacity, will absorb excess grid power and discharge it quickly during supply dips, acting as a contingency reserve.

Aboitiz is also completing a 30-megawatt hybrid battery system in Mactan Economic Zone and managing a pipeline of over 10 battery storage installations throughout the Philippines. The Philippine Energy Regulatory Commission is currently reviewing 17 applications for similar energy storage solutions across the Visayas and Mindanao regions, responding to a Department of Energy mandate.

This shift reflects a broader trend in the Philippines toward grid flexibility and away from centralized fossil fuel generation. The company expects the Naga facility to be operational by October 2027.