SNAP invests in Phillipines energy storage

SN Aboitiz Power Group (SNAP), a joint venture between Scatec and AboitizPower (AP), has made the final investment decision for the 20MW battery energy storage system (BESS) project. The project will be located at the Magat hydropower plant in Ramon, Isabela in the Philippines.

The energy storage project is in final preparations for construction, which will start in 2022, with a targeted commercial operation date in 2024.

A first for both partners

It marks the first venture between renewable energy provider AP and Norweigen renewable energy solutions firm Scatec.

SNAP Group President and Chief Executive Officer, Joseph Yu commented on the announcement in a statement, “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. We also appreciate the support of our banking partners for project financing.”

“[This] is the first step in our ambition to work on more initiatives here. The Philippines is an important market for Scatec, and we see several promising opportunities, especially in renewables,” Scatec’s General Manager for Southeast Asia, Torbjørn Elliot Kirkeby-Garstad added.

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EPC and financing

SNAP signed the engineering, procurement and construction (EPC) agreement with Hitachi Energy for the development of the Magat BESS project on March 25, 2022.

The Bank of the Philippine Islands and China Banking Corporation will provide financing. The facility, which is expandable to 24MW, will be capable of dispatching energy to the grid at times of peak demand and is expected to be used primarily for ancillary services.

AP President and CEO Emmanuel V. Rubio stated, “This new development in our Magat facility is a significant step forward in our renewable energy ambitions over the next 10 years.

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.”

Early-phase activities for the Magat BESS project were completed in 2021 as part of the pre-construction stage, which included site surveys and basic engineering design.

The Philippine government has launched a renewable energy roadmap with an ambition to increase reinstalled renewable capacity to at least 20GW by 2040.

SN Power entered the Filipino market in 2005 and the joint venture is currently the largest private hydropower company in the country with 642MW in operation and a median production of 810GWh.

SNAP owns and operates the Magat hydroelectric power plant, which has a capacity of 360MW. It also owns and operates the 105MW Ambuklao and 140MW Binga hydroelectric power plants in Benguet. The non-power components such as dams, reservoirs, and spillways are owned, managed, and operated by the government.