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SN Aboitiz Power secures EPC contract for Magat energy storage project
April 05, 2022
SN Aboitiz Power Group (SNAP), a joint venture between Scatec and AboitizPower, has signed construction and financing agreements for the development of its 20-megawatt battery energy storage system (BESS) project at its Magat hydroelectric power plant in Ramon, Isabela in the Philippines.
It marks the first venture between leading renewable energy provider, AboitizPower, and Scatec, after the Norwegian renewable energy solutions provider acquired SN Power. Construction is expected to commence in April, signaling the project's progress toward its targeted commercial operation in the first quarter of 2024.
SNAP signed the engineering, procurement and construction (EPC) agreement with Hitachi Energy for the development of the 20-megawatt Magat BESS project on March 25, 2022. The Bank of the Philippine Islands and China Banking Corporation will provide financing.
“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,” SNAP Group President and Chief Executive Officer Joseph Yu said.
“This is an important milestone for the Scatec and Aboitiz partnership in the Philippines. It 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 said.
“This new development in our Magat facility is a significant step forward in our renewable energy ambitions over the next 10 years. We intend to take an active role in the Philippine renewable energy market but this is not our journey alone. 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,” AboitizPower President and CEO Emmanuel V. Rubio said.
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 facility, which is expandable to 24 MW, is expected to be used primarily for ancillary services.
In connection with the BESS project, the upgrade of the 230-kV Magat-Santiago transmission line has been included in the Transmission Development Plan of the National Grid Corporation of the Philippines. The upgrade will allow SNAP to continue adding capacities within the Magat area for additional projects. The Philippine government has launched a Renewable Energy Roadmap with a target of 35% share of renewable energy in the power generation mix by 2030.
DISCLAIMER: This disclosure may contain forward-looking statements that are subject to risk factors and opportunities that may affect SNAP’s implementation of the project subject of this disclosure. The forward-looking statements contained in this disclosure are based upon what management of the Company believes are reasonable assumptions at the date of this disclosure. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.