Scatec JV reaches financial close on co-located BESS with hydro in Philippines

Norwegian headquarted renewable power player Scatec announced that its joint venture in the Philippines has reached financial close on 80 MW of new BESS projects.

The joint venture, known as SN Aboitiz Power (SNAP) via Scatec’s partnership with Aboitiz Renewables, will move to the construction phase for the 40 MW Binga (phase 2) and 40 MW Ambuklao. Both projects are co-located with hydro power plants of the same name, both located in the province of Benguet, a highly mountainous region in the north of the country.

Scatec noted that both will be generating revenues from the reserves market, with projects financed through project debt drawn under debt facilities arranged with SNAP’s existing lenders in the Philippines.

The new BESS capacity expands on capacity already under construction at the Binga and Magat hydro plants and expected to reach commercial operation in 2026, while Scatec noted it has an existing 24 MW BESS co-located with the Magat hydro power plant, which has been generating a, quote, “solid ancillary services revenues from the reserves market since the start of its operations in 2024”.

The total BESS capacity in construction and operation through SNAP in the Philippines is now 160 MW.

Scatec said it believes ancillary services will be “increasingly important over time in the Philippines,” due to higher penetration of intermittent renewables driven by the government’s ambitious renewables targets.

“We are very excited to start construction of two additional BESS projects in the Philippines. With the new batteries we will increase our operational BESS capacity in the Philippines sixfold over the next year, increasing the value of our multi-technology asset portfolio and strengthening our position as a leading provider of ancillary services in the country,” said Scatec CEO Terje Pilskog.

In its regulatory filings at the end of January, Scatec indicated that its BESS plans continue to expand, with its growth portfolio now including more than 6.5 GW of battery storage systems.

Pilskog further said in an earnings transcript that its major battery project in South Africa, Mogobe, was proceeding as planned:

“When it comes to Mogobe in South Africa, our first battery project in South Africa – so when it comes to the solar project in Brazil and also the battery projects in the Philippines, we are expecting to have COD by the end of the
first half. And then, when it comes to Mogobe, our first standalone project, standalone BESS project in South Africa, we are for this project expecting to reach financial close in the second half of this year.”