The project is now making final preparations for construction start later in 2022, with a targeted commercial operation date in 2024, and marks the first venture between the country’s leading provider of renewable energy AboitizPower and Scatec, after the Norwegian renewable energy solutions provider acquired SN Power.
“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” said SNAP Group President and Chief Executive Officer Joseph Yu. “We also appreciate the support of our banking partners for project financing.”
Scatec’s General Manager for Southeast Asia, Torbjørn Elliot Kirkeby-Garstad, added that the investment decision is an important milestone for the Scatec and Aboitiz partnership in the Philippines and is the first step in the company’s ambition to work on more initiatives there.
“The Philippines is an important market for Scatec, and we see several promising opportunities, especially in renewables” Mr Kirkeby-Garstad said.
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 24 MW, will be capable of dispatching energy to the grid at times of peak demand and is expected to be used primarily for ancillary services.
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 20 gigawatts by 2040. SN Power entered the Filipino market in 2005 and today, the joint venture SNAP is the largest private hydropower company in the country with 642 MW in operation and a median production of 810 GWh.
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