Aboitiz Group’s pioneering energy storage venture stabilizes Mindanao grid

The 49-megawatt (MW) hybrid battery energy storage system installed by Aboitiz Power’s Therma Marine Inc. in Davao de Oro is designed to address the power crisis in Mindanao

Consumers in Mindanao enjoy more stable power services after an industry-first 49-megawatt (MW) hybrid battery energy storage system (BESS) in Maco, Davao de Oro kicked off operations.

Aboitiz Power Corp., through its subsidiary Therma Marine Inc. (TMI), held a ceremonial switching on of the project built on a floating platform on Monday.

“The power barge that TMI currently operates has been in Maco, Davao de Oro since 1994. It was installed as part of the solution to address the power crisis in Mindanao,” Aboitiz Power Thermal chief operating officer Ronaldo Ramos said.

“Thirty years later, who would’ve thought that we’d still find ourselves in the same mission of supporting our beloved Mindanao, this time with an innovative twist and a different need to address — the reserve requirements of the grid,” added Ramos.

The facility has notably been commercially available since November 2022. Since then, the project has opened opportunities to support the influx of more variable renewable energy sources into the grid.

First in the region

First-of-its-kind in Southeast Asia, the project will provide ancillary services to maintain grid stability and transmission capacity, complementing TMI’s existing diesel engines and ensuring a continuous supply of high-quality electricity.

BESS is a technology that uses a set of batteries to store electrical energy from the grid. This stored energy can be released when needed to supplement supply or improve the quality of electricity within the system.

The BESS technology can also store electricity for contingency or dispatchable reserves. This means that it can replenish a reduction in generation output and even provide reactive support to ensure power quality.

Aboitiz Power is working on building 3,700 MW of new renewable energy capacity to achieve its target of having 4,600 MW of clean energy in its portfolio by 2030.

The company is also considering investing in low-carbon technologies such as liquefied natural gas, nuclear, and smart power plants to support the country’s energy transition while ensuring energy security.

According to the latest Department of Energy report, the total on-grid capacity of energy storage systems in the power mix increased by 179.5 percent from 156 MW in 2022 to 436 MW in 2023. The increase includes both battery and hybrid technologies.

However, in off-grid areas, the BESS capacity has remained at 1.040 MW since 2022.