(Photo by Aboitiz Power Corporation)
The Energy Regulatory Commission (ERC) has granted provisional approval for the National Grid Corporation of the Philippines (NGCP) to procure battery energy storage services in Mactan, Cebu, as part of efforts to strengthen power reserves and address electricity supply shortages in the Visayas.
In a statement Monday, October 12, the ERC said it issued provisional authority for an Ancillary Services Procurement Agreement (ASPA) involving East Asia Utilities Corporation (EAUC), a subsidiary of Aboitiz Power Corporation.
The approval was granted while the full review of the battery energy storage system (BESS) is still being completed.
According to the ERC, the decision was expedited due to the tight power reserve situation in the Visayas grid and the urgent need to secure additional capacity.
The move supports the Department of Energy’s (DOE) initiative, led by Secretary Sharon Garin, to deploy battery storage technology as an immediate response to power supply constraints.
The DOE earlier directed NGCP to secure additional ancillary services following repeated yellow and red alerts in the Visayas, triggered by high electricity demand and forced outages of several power plants.
ERC data showed that the Visayas grid recorded 123 yellow and red alerts from January to early September 2026, highlighting persistent supply challenges in the region.
DOE Undersecretary Mario Marasigan said the immediate procurement of battery storage systems and power barges is among the government’s short-term measures to address insufficient generating capacity.
He noted that the situation has become more challenging as a strong El Niño affects several provinces, potentially increasing electricity demand during dry and hot conditions.
Marasigan also expressed hope that power generation projects scheduled for completion through 2027 would proceed as planned to provide additional capacity.
The ERC said the battery storage agreement is expected to help improve grid stability and provide additional reserves during periods of high demand or unexpected power plant outages.
