MERALCO POWERGEN CORP. (MGEN), the power generation arm of Manila Electric Co. (Meralco), has tapped two Chinese firms to build its 49-megawatt (MW) battery energy storage system (BESS) in Toledo, Cebu.
In a statement on Thursday, MGEN said it signed an engineering, procurement, and construction contract with Contemporary Amperex Technology Co. Ltd. (CATL) and SUMEC Complete Equipment and Engineering Co. Ltd. (SUMEC).
CATL specializes in energy storage, while SUMEC provides global engineering solutions. Both firms will supply advanced battery technologies and help ensure the project’s timely completion.
Construction and installation are scheduled to begin this month. The project’s first phase will deliver 25 MW by the second quarter of 2026, with the balance expected in 2027.
MGEN President and Chief Executive Officer Emmanuel V. Rubio said the Toledo facility is expected to enhance grid reliability in the Visayas.
“With CATL and SUMEC as our partners, the Toledo BESS project will take shape with the benefit of proven expertise and world-class technology,” he said.
At a briefing, Mr. Rubio said the facility could also help lower costs in the reserve market by providing efficient backup power.
A BESS stores electricity from the grid and releases it as needed to augment supply or stabilize power quality.
MGEN had a net sellable capacity of more than 5,000 MW across the Philippines and Singapore as of end-August.
The company aims to expand this to 10,346 MW by 2030.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
