Aboitiz Power Corp. (AboitizPower) officially broke ground on July 1, 2026, for its 60-megawatt (MW) Naga Battery Energy Storage System (BESS) in Barangay Colon, City of Naga, southern Cebu. The standalone facility is designed to enhance grid reliability in the Visayas by providing contingency and regulating reserve services, helping to stabilize the power grid amid fluctuations in supply and demand.
Project details and location
The Naga BESS will be situated within the Naga Power Plant Complex, a site transitioning from thermal power generation to modern energy storage. This marks AboitizPower’s second battery storage project in Cebu, following a facility in Lapu-Lapu City that is expected to begin operations soon.
Rhea Navarro, regional chief operating officer for the Visayas of AboitizPower’s Transition Business Group, described the technology as functioning like a power bank. “The concept is that it captures and stores electricity from the grid, then releases it when it is needed,” she said. She emphasized the rapid response capability: “Immediate release siya, less than a second magre-release na siya ng energy (The release is almost immediate — it can discharge energy in less than a second).”
Government support and impact on Visayas grid
Department of Energy Undersecretary Mario Marasigan highlighted the project’s significance for the Visayas power system, noting the region’s interconnected island grid requires readily available reserve power as electricity demand grows. “The project we are breaking ground for today will be a big help to the government, especially in the Visayas. The system here in the Visayas is different because all of our islands are interconnected,” he said in Tagalog.
Marasigan added that battery storage is essential for improving grid reliability and supporting industrial growth. “As our demand continues to grow, we also need sufficient support. A battery energy storage system is much needed here in the Visayas. This will show that reliable electricity can support industrial activities in the Visayas if we provide good power service.” He expressed hope that additional battery storage facilities could help eliminate yellow alerts and prevent rotational brownouts.
Current grid challenges
On the same day as the groundbreaking, the National Grid Corp. of the Philippines (NGCP) placed the Visayas grid under a yellow alert from 5 p.m. to 8 p.m., citing thin operating reserves due to the continued unavailability of several major power plants. According to an advisory issued at 8 a.m., available capacity was 2,599 MW against a projected peak demand of 2,411 MW.
NGCP reported that two power plants are on forced outage this July, while other units remain offline from previous months. These include eight plants unavailable since June, seven since May, one since March, three since 2025, two since 2024, two since 2023, and one since 2021. Additionally, 17 power plants are operating at derated capacities, bringing total unavailable capacity to 935.3 MW. The yellow alert was primarily attributed to the continued unavailability of major coal-fired plants TVI 1, TVI 2, and PEDC 3.
Economic and local significance
Cebu Governor Pamela Baricuatro underscored the importance of reliable electricity for sustaining essential services, businesses, and the province’s economic growth. “Projects like this 60-MW battery energy storage system give us greater confidence that Cebu can continue to grow while maintaining a stable and reliable supply,” she said during the groundbreaking ceremony.
The Naga BESS represents a key step in AboitizPower’s energy transition strategy, converting a former thermal plant site into a modern storage facility. Marasigan also encouraged consumers to practice energy conservation and adopt distributed energy resources like rooftop solar panels. “In the end, ang benefit niyan dalawa, nakakatulong ka sa pangkaramihan sa konsumo ng kuryente, pangalawa, nakatutulong din sa bulsa (In the end, it has two benefits: it helps consumers when it comes to electricity use and it also helps save money),” he said.
