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AES has started construction of its first energy storage facility in Asia. The Masinloc AdvancionTM Energy Storage Array will provide 10 MW of interconnected capacity on the Luzon grid. The plant, which will be the first battery-based energy storage facility in the Philippines, will be located next to the Masinloc power plant in Zambales.  The energy storage array will enhance grid reliability by providing fast response ancillary services like frequency regulation. With more efficient balancing of supply and demand, it will also lower costs to consumers, help meet renewables targets, and improve the stability of Luzon’s transmission system.

Across the world, regulators and system operators are increasingly turning to advanced energy storage as a solution for ancillary and other grid services due to its flexibility, speed of response, scalability, and rapidly decreasing costs.  This solution is particularly attractive to island grids that face unique challenges in instantaneously matching supply and demand across a smaller pool of resources.  Energy storage can perform this function more effectively than traditional grid resources, resulting in cost savings and lower emissions system-wide.

“We see energy storage bringing significant benefits for customers in the Philippines, which is short on reserve capacity, has increasing levels of variable-output renewable plants, and faces challenges associated with an island-based grid system,” said Neeraj Bhat, Managing Director – Philippines, for AES. “AES Philippines is pleased to work with key stakeholders including NGCP, the Department of Energy, and the Energy Regulatory Commission to make the Philippines a leader in embracing smart and innovative solutions to meet its customers’ power needs.”

AES Philippines has issued a “Notice to Proceed” to its construction contractor for the Masinloc project.  Site work will begin by the end of 2015 and the facility is expected to be completed by mid-2016.

John Zahurancik, President of AES Energy Storage, said: “We are excited to bring the benefits of energy storage to the Philippines.  The new Masinloc facility will lower costs, reduce system-wide emissions and strengthen the electric grid for the Filipino people.”

AES is a recognized world leader in the development and operation of battery-based energy storage.  Globally, AES has 86 MW of energy storage projects in commercial operation and over 300 MW in construction or late stage development. AES was recently ranked the #1 Energy Storage Integrator in the 2015 Navigant Research Leaderboard Report.

AES is actively developing other battery-based energy storage systems across the Philippines, including a project in Negros Occidental, which would improve the grid’s ability to incorporate the significant volume of renewable generation coming on-line in the Visayas in 2016.  According to Bhat, “Last month, we sent NGCP a very competitive offer to provide frequency regulation services from our Negros project.  We look forward to working with them on an ancillary services agreement so that the facility can help balance supply and demand on the Visayas grid, especially with all the new solar plants that will start operating in Negros next year.”

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