The facility, which is expected to begin operations in 2027, will be built within the Naga Power Plant Complex in Barangay Colon, Naga City, about 42 kilometers south of Cebu City.
It is expected to provide contingency and regulating reserve services, supporting the grid's ability to respond to fluctuations in electricity supply and demand.
A BESS stores surplus electricity in batteries and releases it when needed to augment supply or improve power quality within the electricity grid.
The groundbreaking ceremony on July 1 was attended by government officials led by Energy Undersecretary Mario Marasigan, Cebu Gov. Pam Baricuatro, and Naga Mayor Valdemar Chiong.
Also in attendance were AboitizPower distribution business group SVP and COO Anton Perdices; AboitizPower transition business group president Celso Caballero III; AboitizPower transition business group COO Aldo Ramos; AboitizPower transition business group SVP for project development and execution Voltaire Cruz; and AboitizPower transition business group regional COO for Visayas Rhea Navarro.
Transformation
The Naga Power Plant Complex was built by National Power Corp. (NPC), a government-owned and controlled corporation, in the 1980s. AboitizPower acquired the facility in 2018 through the government's privatization program.
The Naga BESS project marks the site's transition from thermal power generation to an energy storage hub. By retiring and demolishing its aging coal- and diesel-fired generating units, AboitizPower is repositioning the complex to meet the Visayas' evolving grid requirements while supporting the Philippines' broader clean energy transition.
"Naga BESS represents transformation in action. It reflects our efforts to strengthen the energy system by investing in people, infrastructure, and technology to enhance the flexibility, resilience, and reliability of the grid," said Caballero.
Support
Marasigan welcomed the Naga BESS project, saying it would help Cebu better withstand power disruptions, support economic growth, and enable greater integration of renewable energy into the Visayas grid.
"The Department of Energy commends AboitizPower for its continued confidence in the Philippine energy future. Your investment demonstrates that innovation and sustainability can go beyond what we have been dreaming of," Marasigan said.
Baricuatro, meanwhile, assured the provincial government's support for private sector programs and initiatives that benefit Cebu's economy and its people.
She said projects such as the Naga BESS would help build a stronger, more resilient, and future-ready Cebu by strengthening the province's energy infrastructure and making it more attractive to investors, particularly as the Visayas grid continues to experience recurring Yellow Alerts since May 12.
"Before we can attract more investments, we must ensure that we have the infrastructure to support them," Baricuatro said. "One of our biggest concerns today is power stability."
"In recent months, Cebu has experienced several Yellow Alerts, reminding us that as our economy grows and the demand for electricity continues to increase, we must also strengthen the systems that keep our homes, businesses, hospitals, schools, and industries running."
Reliability and stability
As more renewable energy sources are integrated into the power grid, battery energy storage systems (BESS) are playing an increasingly important role in maintaining grid reliability and stability.
Designed to respond almost instantly to fluctuations in electricity supply and demand, BESS provides critical short-term support that helps ensure the efficient and reliable operation of the power system.
The Naga BESS project is part of AboitizPower's broader strategy to maintain a balanced and diversified energy portfolio in line with the Philippine Energy Plan and the country's energy transition goals. —Ed: Corrie S. Narisma
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