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Construction is underway on a large-scale battery energy storage system (BESS) in Toledo City that will help reinforce Cebu’s power reliability amid fast-rising electricity demand and the country’s broader shift toward renewable energy.
The facility, spearheaded by Meralco PowerGen Corporation (MGEN) through its subsidiary MGEN Thermal, will have a total capacity of 49 megawatts (MW) once fully operational. The first phase, capable of storing 25 MW, is set for commissioning in the first quarter of 2026, while the second phase, adding 24 MW, will follow in 2027.
Felino “Lino” Bernardo, MGEN Thermal president and CEO, said the project aims to address the intermittency of renewable energy sources such as solar and wind. “If there are clouds, our solar plants won’t produce; if the wind is slow, turbines stop spinning. Energy storage bridges that gap. That’s why we have batteries,” he told Cebu media in a briefing.
The BESS project is part of MGEN’s effort to strengthen grid stability while supporting the government’s renewable energy transition targets of 35% by 2030 and 50% by 2040, as set by the Department of Energy (DOE).
Global Partnerships Power Local Resilience
To implement the project, MGEN signed an engineering, procurement, and construction (EPC) contract with Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle battery manufacturer, and SUMEC Complete Equipment and Engineering Co. Ltd. (SUMEC). CATL will supply advanced battery technologies, while SUMEC oversees project execution and integration.
Bernardo noted that beyond energy storage, the facility will help smooth fluctuations in renewable generation and contribute to the Visayas grid’s overall reliability. “This is MGEN’s contribution to a sustainable future,” he said.
Rising Demand Puts Pressure on Cebu’s Grid
Industry leaders say Cebu’s growing power needs underscore the urgency of such investments. According to Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry (MCCI), electricity demand in Cebu is increasing by about 150 MW each year, outpacing the expansion of new generation capacity.
“Demand continues to grow faster than supply,” Ynoc said. “If this imbalance is not addressed soon, the risk of disruptions becomes a serious concern for investors who require reliability and predictability.”
Cebu, one of the Philippines’ key industrial and services hubs, relies heavily on the Visayas grid, which business groups warn is already operating with narrow reserve margins during peak periods. Any delay in bringing new plants online or unexpected outages could expose the island to costly power interruptions.
Scaling Up the Transition
Beyond Cebu, MGEN is advancing the MTerra Solar Project, described as the world’s largest integrated solar and battery storage facility. The project combines 3,500 megawatts-peak (MWp) of solar capacity with 4,500 megawatt-hours (MWh) of battery storage across 3,500 hectares in Bulacan and Nueva Ecija.
Construction began in 2024, with phased completion expected by early 2026. Once fully operational, MTerra Solar is projected to power 2.4 million Filipino homes and cut 4.3 million tons of carbon emissions annually.
Bernardo said the project exemplifies MGEN’s push for long-term sustainability and energy diversification. “When completed, MTerra Solar will play a critical role in helping the country achieve its renewable energy targets,” he said.
A More Secure And Sustainable Energy Outlook
MGEN’s battery and solar initiatives are pivotal in addressing both energy security and investment confidence. By providing flexible storage capacity, the Toledo facility could help stabilize supply in the Visayas, reducing risks of brownouts and price volatility.
From a policy standpoint, the project aligns with the DOE’s Philippine Energy Plan, which promotes energy storage as a key enabler of renewable integration. For investors, the entry of globally recognized firms like CATL signals growing confidence in the Philippines’ clean energy infrastructure sector.
As Jacqueline Gorospe, MGEN’s corporate communications head, put it, the company’s broader vision is “to be a leader in the Philippines’ transition to a secure, affordable, and sustainable energy future, while fueling economic growth by meeting our nation’s energy requirement.”
With Cebu’s demand surging and renewables rapidly expanding, MGEN’s latest move positions the province, and the country, one step closer to a more resilient and low-carbon energy landscape.
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