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Meralco PowerGen Corp. (MGEN) has energized its Toledo Battery Energy Storage System (BESS) project in Cebu, marking a major addition to the Visayas power grid as the country pushes for stronger energy security and greater integration of renewable energy.
The project, launched on May 8 through MGEN’s thermal subsidiary Toledo Energy Development Corp., is the first two-hour battery energy storage facility in the Visayas capable of continuously delivering its rated output for two hours before requiring recharge.
Phase 1 of the facility can supply 25 megawatts (MW) and 56.44 megawatt-hours (MWh) using advanced lithium-ion battery technology. The system stores electricity sourced from both renewable and conventional power plants through the Wholesale Electricity Spot Market (WESM), allowing stored power to be dispatched during periods of high demand or supply fluctuations.
Grid Support
“The MGEN Toledo BESS is expected to play a critical role in supporting the stability of the Visayas grid and in advancing the energy transition,” MGEN Thermal President and Chief Executive Officer Felino M. Bernardo said.
“By helping manage fluctuations during peak and off-peak hours, the facility will contribute to maintaining reliable power delivery and improving overall grid resilience,” he added.
Beyond storing electricity, the battery facility is also designed to provide ancillary services that help grid operators balance supply and demand more quickly and accurately.
The Department of Energy (DOE) has been encouraging the rollout of battery energy storage systems nationwide, particularly as more renewable energy projects are connected to the grid. Current DOE policy requires variable renewable energy plants with at least 10-MW capacity to integrate storage facilities to help maintain system stability and reliability.
Key Demand Center
MGEN President and CEO Emmanuel V. Rubio said Cebu remains one of the company’s most important markets in the Visayas and highlighted the strategic value of the project to the region’s energy system.
“The energization of the Toledo BESS marks an important milestone for the Visayas grid and reflects MGEN’s continuing commitment to support a more reliable, resilient, and sustainable energy system,” Rubio said.
“We view this as a meaningful step forward for the region’s energy system, and MGEN is proud to support Cebu’s continued growth while helping power a better tomorrow,” he added.
The switch-on ceremony was attended by representatives from the DOE, National Grid Corp. of the Philippines (NGCP), Cebu provincial government, Toledo City government, host site Carmen Copper Corp., and project partners Contemporary Amperex Technology Co. Ltd. (CATL) and SUMEC Complete Equipment and Engineering Co. Ltd.
DOE Region VII Director Renante Sevilla, Cebu Provincial Board Committee on Energy Chairman Dr. Stanley Caminero, representing Governor Pamela Baricuatro, and Toledo City Mayor Marjorie “Joie” Perales were among the officials present during the event.
MGEN also underscored the role of collaboration between government agencies, private companies, and industry stakeholders in supporting the country’s energy transition goals.
Long-Term Expansion
The company said Phase 2 of the Toledo BESS project is targeted for completion by June 2027, subject to regulatory approvals. Once completed, the second phase is expected to mirror the capacity of the initial development.
The Toledo project is MGEN’s second battery energy storage venture in the Philippines and forms part of its broader strategy to combine conventional and renewable energy technologies.
Among its major pipeline projects is the MTerra Solar development in Nueva Ecija, which includes a planned 3,500-megawatt-peak solar facility paired with a 4,500-MWh battery energy storage system.
MGEN said these projects are intended to support the country’s transition toward a more secure, reliable, and sustainable power mix amid rising electricity demand and the continued expansion of renewable energy capacity.
Source:
https://www.dailyguardian.com.ph/blog/mgen-energizes-toledo-bess-boosting-visayas-grid-stability
https://mb.com.ph/2026/05/08/mgen-energizes-toledo-battery-storage-in-cebu