SN Aboitiz Power Group (SNAP) has reached the final investment decision for the 20MW battery energy storage system (BESS) project at the Magat hydropower plant in Philippines.
SNAP is a joint venture between Norwegian renewable energy company Scatec and Philippines-based electric services company AboitizPower.
The Magat BESS project is currently under preparation for the construction, which is anticipated to commence later this year, with commercial operations expected in 2024.
Expandable to 24MW, the BESS facility is designed to dispatch energy to the grid at times of peak demand and is primarily intended to be used for ancillary services.
SNAP has completed the pre-construction stage early-phase activities at Magat BESS project last year, which included site surveys and basic engineering design.
The JV is supported by the Bank of the Philippine Islands and China Banking Corporation, for project financing.
AboitizPower president and CEO Emmanuel V Rubio said: “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.”
Scatec Southeast Asia general manager Torbjørn Elliot Kirkeby-Garstad said: “This is an important milestone for the Scatec and Aboitiz partnership in the Philippines. It is the first step in our ambition to work on more initiatives here.”
SNAP owns and operates the Magat hydroelectric power plant, with capacity ranging between 360MW and 388MW, located in the border of Isabela and Ifugao provinces.
It also owns 8.5-MW Maris hydro in Isabela and operates the 105MW Ambuklao and 140MW Binga hydroelectric power plants in Benguet province, Philippines.
In March this year, the JV has signed the engineering, procurement and construction (EPC) agreement with Hitachi Energy for the development of the Magat BESS project.
SNAP is said to be the largest private hydropower company in Philippines, with 642MW in operation and a median production of 810GWh.
SNAP Group president and chief executive officer Joseph Yu said: “We are excited about technologies like BESS that complement our ambition of bringing forth an RE-powered future, and continue to explore and assess other greenfield and brownfield opportunities beyond hydropower and floating solar.”
