PRESIDENT Ferdinand R. Marcos Jr. sees renewable energy gaining mainstream usage with the construction of more Battery Energy Storage System (BESS) projects nationwide.
Gracing the inauguration of the San Miguel Global Power’s (SMGP) BESS in Limay, Bataan on Friday, Marcos stressed the importance of such storage facilities to make renewable energy (RE) more reliable.
“As much as we desire to rely on renewable energy, we know that the electricity generated from sources such as solar, wind, [and] water can sometimes be considered intermittent. They cannot function continuously and perfectly, because of inherent factors and other circumstances beyond our control such as the wind blowing or the sun shining,” Marcos said.
“So, introducing a storage component into the overall energy infrastructure provides the crucial support mechanism that shall optimize these resources, make them more efficient and reliable,” he added.
San Miguel Chief Executive Officer Ramon S. Ang, who was present during the inauguration, said the BESS can also make existing base load plants, which run on fossil-based fuel, more efficient, leading to lower electricity rates.
“They can store excess energy from traditional and renewable energy during low demand and release it back to the grid when demand increase or peaking,” Ang said.
SMGP’s BESS in Bataan has a 50-megawatt (MW) capacity.
The firm is planning to build 32 similar facilities nationwide with a combined capacity of 1,000 MW by the end of this year.
San Miguel Global Power Holdings Corp.’s 1000-megawatt (MW) BESS network is deemed crucial to wider use of renewable energy in the country, which is currently plagued by the problem of intermittence, or the unreliable nature of renewable sources such as wind, solar, and hydropower. Battery technology will enable renewable capacity to be stored, ready to be deployed even when solar or wind farms or hydropower plants are down.
“Our BESS facilities will support the country’s power grid by storing excess power from existing plants, and injecting this power back, when and where it is needed, within milliseconds—ensuring power quality is stable, and reaches users all over the country,” said SMC’s Ang.
In his speech at the inauguration, President Marcos said, “With a total 1,000 MWh of BESS in 32 sites nationwide, San Miguel Global Power, a proudly Filipino company, is poised to become one of the largest grid-scale battery storage system operators in the world—something our nation can be truly proud of. This puts us ahead of so many countries in terms of adoption of this technology, which is crucial to our clean energy future.”
Ang explained that the 90MW BESS facilities are part of the 32 facilities—with a combined capacity of 1000 MW—that San Miguel Global Power has been building and targeting to complete by December this year.
“We now have 640MW while the balance of 360MW will be ready by December this year,” said Ang.
Strategically located in various parts of the country, the company’s BESS facilities can instantly increase peak system supply to meet growing energy demands post pandemic, said Ang.
“Equally important, our facilities can support the integration of over 5,000 MW of renewable power sources into the grid. They can store excess energy from traditional and renewable sources during periods of low demand and release it back into the grid when demand increases. The solution that we need to help address our most pressing energy concerns, is already at our doorstep,” added Ang.
BESS technology was pioneered in the Philippines as far back as 2016 by what is now SMC’s Masinloc power facility. That pioneering BESS project introduced the use of advanced lithium-ion battery technologies in the Philippines and Southeast Asia. Today, BESS contributes to the ancillary services of the National Grid Corporation of the Philippines (NGCP) for grid stability and security.
Ang also pushed for BESS as one of the solutions to the looming power crisis, saying it can bridge the energy security gap by storing excess energy when it is available, and releasing it when demand is high.
“Government is working to avert a power crisis. But we know it takes time to complete new power facilities. The BESS network is already here, and it can provide immediate mitigation to the power crisis,” Ang said.
San Miguel Global Power partnered with ABB Philippines, Fluence, and Wartsila as its Engineering, Procurement, and Construction contractors.
BOI-approved BESS projects
Marcos said the Board of Investments (BOI) has approved BESS projects nationwide with a total capacity of 2,000 MW.
To further promote the local usage of renewables, he assured the public that the government will implement a proper policy and regulatory framework for the industry, especially for the ESS technology.
“The Department of Energy is currently working on an improved and expanded version of our ESS policy,” Marcos said.
With renewables becoming more reliable, Marcos said more firms will be encouraged to invest in sustainable power sources. “All this with a view to further encourage and incentivize the private sector and allow them reasonable returns on their investments.”
He welcomes such developments, saying such will help the government attain its target of increasing the share of renewables in the country’s total generation mix.
