A joint venture between SN Aboitiz Power ( SNAP ) and Norway’s Scatec has reached financial close and is preparing to start the construction of the 40-megawatt Binga ( phase 2 ) and 40MW Ambuklao battery energy storage systems ( BESS ).

The battery systems will be co-located with the Binga and Ambuklao hydropower plants in the northern province of Benguet.

The new capacity builds on the success of the existing 24MW BESS co-located with the Magat hydro power plant, which has been generating ancillary service revenues from the reserves market since it started operating in 2024.

SNAP also has 40MW and 16MW of BESS capacity currently under construction at the Binga and Magat hydro power plants, respectively. These are expected to start commercial operations later this year.

Batteries are optimal for ancillary services due to their fast response time to correct real-time fluctuations in grid frequency, flexibility to perform multiple grid services, and cost competitiveness. Ancillary services in the Philippines will be increasingly important over time due to higher penetration of intermittent renewables driven by the government’s ambitious renewable energy targets.

“We are very excited to start construction of two additional BESS projects in the Philippines,“ says Scatec chief executive officer Terje Pilskog. “With the new batteries, we will increase our operational BESS capacity in the Philippines sixfold over the next year, increasing the value of our multi-technology asset portfolio and strengthening our position as a leading provider of ancillary services in the country.”