NAGA CITY, Cebu — As the Visayas grapples with recurring yellow alerts, Aboitiz Power Corp. has begun building a battery storage facility in Cebu aimed at strengthening the region’s power reserves.
The company broke ground on its 60-megawatt Battery Energy Storage System (BESS) on Wednesday at the Naga Power Plant Complex in Barangay Colon, City of Naga, southern Cebu. The standalone facility is scheduled to begin commercial operations by October 2027.
The project is AboitizPower’s second battery storage facility in Cebu and is designed to store excess electricity from the grid and release it during periods of high demand or reduced supply, helping stabilize the Visayas grid as electricity demand and renewable energy integration continue to increase.
The battery facility also marks the transformation of the former Naga Power Plant Complex. Its coal and diesel-fired generating units have already been decommissioned and dismantled after AboitizPower acquired the site from the National Power Corporation in 2018.
AboitizPower Transition Business Group president Celso Caballero III said the project reflects the company’s commitment to strengthening the country’s power infrastructure.
“Naga BESS represents transformation in action. It reflects our efforts to strengthen the energy system by investing in people, infrastructure, and technology, to enhance flexibility, resilience, and reliability of the grid,” Caballero said.
The Department of Energy (DOE) said battery energy storage systems are becoming increasingly important as more renewable energy sources, particularly solar power, are connected to the grid.
DOE undersecretary Mario Marasigan said the Visayas needs at least 200 megawatts of additional battery storage capacity to strengthen operating reserves and help reduce the occurrence of yellow alerts caused by thinning reserves and unplanned plant outages.
He said battery storage facilities can inject electricity into the grid almost instantly during supply fluctuations, helping maintain reliable power for industries, business process outsourcing firms, data centers and households.
DOE data showed around 50 megawatts of battery storage capacity are currently operating in the Visayas, while another 350 to 400 megawatts are under development.
AboitizPower Transition Business Group Regional Chief Operating Officer for Visayas Rhea Navarro said the Naga BESS will operate independently and is not attached to a generating plant.
“It will be operational on its own... You charge it in the grid during the time when there’s an excessive supply. You charge it there, and then you release the energy during the periods when the supply is low and the demand is high,” Navarro said.
The facility has an initial capacity of 60 megawatts and may be expanded to as much as 120 megawatt-hours in the future.
Cebu Gov. Pamela Baricuatro, meanwhile, said dependable electricity is vital to sustaining economic activity and future investments across the province.
“We must also strengthen the systems that keep our homes, businesses, hospitals, schools, and industries running,” Baricuatro said.
The governor also cited the province’s rising investment activity, saying Cebu must remain “investment-ready” not only in opportunities but also in infrastructure that supports long-term growth.
Baricuatro said the project signals that Cebu is prepared for future development while pushing for more sustainable and resilient energy systems.