SN Aboitiz Power Group (SNAP), a joint venture between Norwegian firm Scatec and Aboitiz Power Corporation, has tapped Japanese firm Hitachi Energy for the engineering, procurement and construction (EPC) contract of its 20-megawatt battery energy storage system (BESS) project to be installed at its Magat hydroelectric power facility in Isabela province.
The company noted that project construction will start this April and commercial completion by the first quarter of 2024.
Financing for the battery energy storage venture will be provided by the Bank of the Philippine Islands (BPI) and China Banking Corporation.
“Early-phase activities for the Magat BESS project were completed in 2021 as part of the pre-construction stage -- which included site surveys and basic engineering design,” the firm said.
The BESS project of SNAP is expandable to 24 MW – and it is aligned primarily for ancillary services or the required provision of reserves in the power system.
According to SNAP Group President and CEO Joseph Yu, their BESS installation will “complement our ambition of bringing forth a renewable energy-powered future.”
The company executive highlighted that the BESS installation will go along with the firm’s continued drive “to explore and assess other greenfield and brownfield opportunities beyond hydropower and floating solar.”
Torbjørn Elliot Kirkeby-Garstad, general manager for Southeast Asia of Scatec, similarly stated that “this is an important milestone for the Scatec and Aboitiz partnership in the Philippines.”
He said,“The first step in our ambition to work on more initiatives here. The Philippines is an important market for Scatec, and we see several promising opportunities, especially in renewables.”
Aboitiz Power President and CEO Emmanuel V. Rubio further pointed out that this initial BESS venture of SNAP at the Magat facility will be a “significant step forward in our renewable energy ambitions over the next 10 years.”
He asserted “we intend to take an active role in the Philippine renewable energy market but this is not our journey alone. We’re fortunate and proud to be working with Scatec, Hitachi, and our banking partners with whom we share the same aspiration for a more sustainable energy future.”
For infrastructure support to the BESS project, SNAP saw the need to upgrade the 230-kilovolt Magat-Santiago transmission line; and so far, that has already been included in the Transmission Development Plan of the National Grid Corporation of the Philippines.
“The upgrade will allow SNAP to continue adding capacities within the Magat area for additional projects,” the company emphasized.