Historic Milestone: Philippines’ First Geothermal-BESS Hybrid System

In a historic milestone for the Philippine renewable energy sector, AP Renewables Inc. (APRI), the geothermal subsidiary of Aboitiz Power Corporation, has signed an Engineering, Procurement, and Construction (EPC) contract with Shandong Electric Power Engineering Consulting Institute Co. Ltd (SDEPCI) for the Bay Battery Energy Storage System (BESS) Project.

A Historic Milestone for Philippine Renewable Energy: (L-R) SDEPCI Vice President Sun Ligang, ARI President Jimmy Villaroman, ARI COO Alex Coo, and APRI President Jeffrey Estrella sign the EPC contract for the groundbreaking Bay BESS Project, the country’s first geothermal and battery energy storage hybrid system.

The signing, held on November 7, 2024, marks the launch of the country’s first-ever hybrid system combining battery energy storage with geothermal power. Slated for construction in Barangay Bitin, Bay, Laguna, the Bay BESS Project integrates advanced battery storage technology with APRI’s existing Makban geothermal plant.

This pioneering hybrid system will enhance grid stability, supporting the Luzon Grid during peak demand and power disruptions.

It highlights the increasing role of renewable energy in addressing the Philippines' growing energy needs while contributing to the global transition toward sustainable energy solutions.

“This project is a testament to APRI’s commitment to driving innovative solutions in the energy sector,” said APRI President Jeffrey Estrella. “We are proud to host this new investment that will not only contribute to the energy transition but also bring lasting benefits to our host communities.”

ARI COO Alex Coo hailed the project as a “groundbreaking milestone,” emphasizing its significance as the country’s first geothermal-BESS hybrid system.

Meanwhile, SDEPCI Vice President Sun Ligang affirmed his company’s commitment to delivering high performance and reliability, ensuring the project's success. Beyond advancing the renewable energy landscape, the Bay BESS Project promises economic benefits for the region.

It is expected to drive industrial growth, generate employment opportunities, and stimulate local commerce. By enhancing reliable power delivery, the project will support Luzon’s trade and industry sectors, fostering long-term economic development in the region.

Jimmy Villaroman, President of Aboitiz Renewables Inc., underscored the collaborative nature of the energy transition, stating, “This endeavor exemplifies our collective dedication to overcoming challenges and achieving shared goals for a sustainable future.”

The Bay BESS Project aligns with AboitizPower’s mission of providing innovative energy solutions while uplifting communities.

As one of the Philippines’ leading renewable energy producers, AboitizPower continues to expand its portfolio of geothermal, hydroelectric, solar, and wind energy assets, reinforcing its position as a key player in the country’s energy transition.

This historic partnership reaffirms the Philippines’ commitment to renewable energy and signals a transformative step toward a greener and more sustainable future.