San Miguel unit fast-tracking installation of BESS facilities

BY LENIE LECTURA – OCTOBER 6, 2022
from Business Mirror

SMC GLOBAL Power Holdings Corp. (SMCGP) is targeting to complete the installation of 1000 megawatts (MW) of battery energy storage system (BESS) facilities before next year’s peak season, which is during the hot dry season.

“We will reach 1,000 MW very soon, within the next few months. We hope before the peak season,” said SMCGP President Ramon S. Ang.

The power arm of conglomerate SMC has already completed putting up 500MW of installed power storage capacity from its planned 32 BESS facilities. It has targeted to bring total battery capacity to 700 MWh by the end of this year, and by the end of 2023, 1,000 MW, once all 32 BESS facilities come online. This is the first and largest battery network in the Philippines by far.

The BESS network will be key to ensuring reliable power supply nationwide, even in far-off areas. It is designed to minimize wastage by storing and redistributing excess capacity to ensure even underserved regions can have the same sufficient, reliable electricity enjoyed by larger cities.

“Our peak during summer months is 12,000MW, during off peak it’s 10,000MW. During off peak, our BESS can capture the oversupply and I can sell it during peak. I can sell it very cheap at P2 per kilowatt hour (kWh). I can even sell it at P3 per kWh. The 1,000MW BESS that we are putting up is a big thing because it can capture the swing up and down of power plants,” said Ang.

During the hot dry season months, electricity demand is at its peak.

Ang said he plans to sell it directly to the manufacturing industries, among others, and possibly build a battery storage manufacturing facility.

“I can also sell it directly to factories, steel mills. I also want to get involved in the battery storage manufacturing using nickel ion so I will no longer buy. Instead, I can produce it and export it.

For example, the consumption of steel mills is around 100MW and 400MW for smelters. I can sell it to them and put it anywhere, transport it anywhere. Our battery project can be duplicated by others. The batteries will stabilize the system, voltage, frequency, peaking requirement,” said Ang.

SMCGP’s BESS facilities are also crucial to expanding the use of renewable energy in the country. Currently, the main challenge of renewables is intermittence, or the unreliable nature of renewable sources such as wind, solar, and hydropower. Battery technology will enable renewable capacity to be stored, ready to be deployed even when solar or wind farms or hydropower plants are down.