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Manila Bulletin devider Business devider Trade & Industry devider Aboitiz replaces legacy Cebu coal plant with battery storage project

Aboitiz replaces legacy Cebu coal plant with battery storage project

Published Jul 1, 2026 03:54 pm
AboitizPower is set to construct the 60-megawatt Naga BESS project in Naga City, Cebu, following a groundbreaking ceremony led by (L-R) AboitizPower Transition Business Group (TBG) SVP for Project Development & Execution Volt Cruz, TBG COO Aldo Ramos, and TBG President Celso Caballero III, together with Cebu Governor Pamela Baricuatro, Energy Undersecretary Mario Marasigan, and Naga Mayor Valdemar Chiong, as well as AboitizPower TBG Regional COO for Visayas Rhea Navarro and Distribution Business Group SVP & COO Anton Perdices.
AboitizPower is set to construct the 60-megawatt Naga BESS project in Naga City, Cebu, following a groundbreaking ceremony led by (L-R) AboitizPower Transition Business Group (TBG) SVP for Project Development & Execution Volt Cruz, TBG COO Aldo Ramos, and TBG President Celso Caballero III, together with Cebu Governor Pamela Baricuatro, Energy Undersecretary Mario Marasigan, and Naga Mayor Valdemar Chiong, as well as AboitizPower TBG Regional COO for Visayas Rhea Navarro and Distribution Business Group SVP & COO Anton Perdices.
Aboitiz Power Corp. broke ground on a 60-megawatt standalone battery energy storage system in Cebu, accelerating its grid-stabilization efforts in the region as more volatile renewable energy sources come online.
Aboitiz Power Corp. said Wednesday, July 1 that the upcoming facility will be located within the Naga Power Plant Complex in Naga City. Once operational, the standalone battery asset will deliver contingency and regulating reserve services to mitigate fluctuations in the Visayas region’s electricity supply and demand.
The project is scheduled to commence commercial operations by 2027, aligning with the targets of the Philippine Energy Plan to integrate more variable renewable energy into the national grid.
The Department of Energy has aggressively pushed for modern storage technologies to prevent power outages as the country shifts away from fossil fuels.
Energy Undersecretary Mario Marasigan lauded the conglomerate’s latest venture, emphasizing the critical role of storage technologies in the country's clean energy transition. While the government continuously invites investment in renewable energy technologies, it requires this specific technological support to create a reliable and efficient system, Marasigan said.
The development marks a major transformation for the site, which was originally established by the state-owned National Power Corp. in the 1980s. AboitizPower acquired the complex in 2018 through a government privatization program. To pave the way for the multi-billion peso battery asset, the company decommissioned and demolished the site’s legacy coal and diesel-fired units.
Local government officials are counting on the project to safeguard economic growth in the region, which has been hampered by intermittent power supply issues in recent years.
Cebu Governor Pamela Baricuatro said that before the province can attract more investments, it must first ensure it has the infrastructure to support them. Projects like this give local authorities greater confidence that Cebu can sustain its economic expansion while maintaining a stable and reliable power supply, Baricuatro added.
The facility represents a proactive step toward modernizing the grid's overall resilience, according to Celso C. Caballero III, president of the AboitizPower Transition Business Group. The Naga project reflects the company's efforts to strengthen the energy system by investing in infrastructure and technology to enhance flexibility, resilience, and reliability of the grid, Caballero said. (Gabriell Christel Galang)

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AboitizPower battery energy storage systems (BESS)
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