ESS Project in The Philippines With Multiple Driving Forces Around The Convergence Of Energy Storage

The energy storage industry in the Philippines will become a "full scale market" within a few years.

In May, the Philippine Electric Power Company completed the commissioning of two grid battery energy storage system (BESS) projects with a total capacity of 60MW/60MWh. As part of a 100MW/100MWh contract, following Toledo’s 20MW/20MWh system and Bataan’s 40MW/40MWh system, the Philippines reportedly plans to develop about 30 BESS projects.

A few months ago, the Philippines was developing another project-the construction of a 54MW/32MWh BESS in a "water power station". This should be the first such project in Southeast Asia. The floating power station will be integrated with a 100MW floating diesel power station to reduce emissions, shorten operation time, and improve the efficiency of thermal power asset projects.

In this journey, the Philippines has just begun. In the next few years, this market in the Philippines will develop into a complete market, and it will also become a regular business segment of the power industry. "

"The challenge comes from the rest of the power station, which usually involves coordinating design, procurement, and construction (EPC) contracting activities with traditional civil engineering, site management, and local authorities."

"In other words, this is a human business."

Including typhoons and heavy rains, the weather conditions in the Philippines are equally challenging. In addition, implementing projects and complying with various restrictions and rules during the COVID-19 epidemic also brought unique challenges.

Energy Transition in Southeast Asia: Multiple Driving Forces Around the Convergence of Energy Storage

The power grid in the Philippines is isolated and quite weak, and there is no ideal interconnection system between different districts. In many parts of the world, some densely populated cities can be used as energy hubs. The difference is that the power system in the Philippines stretches to remote areas off the beaten track. Energy storage can improve the flexibility of power grids and power supply, and it is also a solution to balance the capacity of thermal power stations. This concept is gaining recognition.

At the same time, throughout Southeast Asia, with the increasing influx of renewable energy. There are opportunities to upgrade and consolidate aging infrastructure and provide a more flexible and reliable power grid. Punnonen added that the populations of many countries in this region are also rapidly urbanizing, which is followed by an increase in electricity demand and the restrictions on the grid caused by this growth.

In fact, it is not only the growth of renewable energy that is driving the modern energy transition in Southeast Asia, but also the “existing energy challenges that have brought volatility” as described by Kari Punnonen. Although the above-mentioned aging regional energy infrastructure needs to be replaced, in the next ten years, in many cases, this region can also use this opportunity to "surpass" traditional energy sources and build renewable energy + energy storage or natural gas + energy storage hybrid power stations. This makes the energy market in Southeast Asia "exciting."

"Energy storage is one of the key components of the energy transition. This is a consensus in the industry."

Regional markets such as the United Kingdom and the United States have really started their own energy storage journey. In some areas of Southeast Asia, batteries have begun to integrate with ancillary service markets, such as frequency modulation services. Nevertheless, energy storage needs to be built for other applications and used for auxiliary services. Large industry players in this region are taking active actions.