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The Visayas and Mindanao are drawing increasing investor interest in battery energy storage systems (BESS) as regulators move to strengthen grid reliability and support the rapid expansion of renewable energy and industrial activity outside Luzon, according to the Energy Regulatory Commission (ERC).
The ERC said it has received 17 applications for battery energy storage projects across the two regions, reflecting growing confidence in technologies that can address grid flexibility challenges while improving the reliability of electricity supply.
Speaking during Schneider Electric Philippines’ Innovation Day 2026 in Cebu on Wednesday, ERC Executive Director Nancy Aurora Q. Fajardo said the country’s power sector is entering a new phase where ensuring system resilience has become as important as adding new generation capacity.
Grid Flexibility
“For many years, discussions about power reliability were largely framed around a single question: Do we have enough power plants?” Fajardo said. “Today’s challenge is no longer simply supply adequacy, but system flexibility.”
The shift comes after a series of yellow and red alerts in the Visayas exposed vulnerabilities in the grid despite generally adequate generation capacity. The alerts underscored the growing need for reserve capacity, ancillary services, transmission upgrades, and energy storage facilities to maintain a reliable electricity supply.
On Wednesday, the Visayas grid was placed under a yellow alert after operating reserves thinned due to the unavailability of several major power plants and higher electricity demand. Data from the National Grid Corp. of the Philippines (NGCP) showed available capacity at 2,542 megawatts (MW) against peak demand of 2,362 MW.
NGCP reported multiple power plant outages and derated generating units during the month, resulting in nearly 1,000 MW of unavailable capacity.
“When power systems come under stress, industries adjust operations, supply chains face disruptions, business costs increase, and investor confidence can be affected,” Fajardo said. “Reliability remains the foundation upon which innovation, industrialization, and long-term competitiveness are built.”
Battery Storage Gains Momentum
The ERC said battery energy storage systems are becoming an increasingly important component of modern grid operations by storing excess renewable energy and releasing it during periods of peak demand or supply shortages.
Often described as utility-scale power banks, BESS facilities provide short-term balancing services that help stabilize electricity networks while accommodating intermittent renewable sources such as solar and wind.
Several power companies have already announced plans to expand battery storage capacity in the Visayas, including projects by AboitizPower and Meralco PowerGen (MGEN). Among the proposed developments is a 30-MW battery facility in Lapu-Lapu City, Cebu.
Earlier, the Department of Energy (DOE) also directed the deployment of around 170 MW of battery energy storage capacity across Cebu, Negros, and Panay as part of immediate measures to improve grid stability and provide ancillary services.
The ERC said it supports the DOE’s policy requiring new variable renewable energy projects with capacities of at least 10 MW to integrate battery storage equivalent to at least 20 percent of installed capacity, helping align renewable generation with real-time electricity demand while minimizing supply fluctuations.
Renewable Expansion
Beyond energy storage, the ERC is updating the Philippine Grid Code to formally recognize inverter-based technologies such as solar, wind, and battery storage systems, not only as power generation sources but also as active contributors to frequency regulation, voltage stability, and overall system reliability.
Fajardo also emphasized that transmission constraints remain one of the biggest obstacles to maximizing available generation.
“Even sufficient generation may not be fully delivered or utilized because the grid may not yet have the capacity to carry it,” she said.
To address these bottlenecks, the commission recently approved additional revenues for NGCP to finance transmission modernization projects and expand the country’s power grid.
The ERC has likewise established a framework allowing private entities other than NGCP to finance and construct selected transmission facilities, a move intended to accelerate infrastructure development and reduce project delays.
Growth Opportunities Outside Luzon
The regulator said the Visayas and Mindanao are increasingly becoming hubs for manufacturing, data centers, logistics, cold storage facilities, and other digital industries that require uninterrupted electricity.
At the same time, renewable energy investments continue to accelerate across both regions. Earlier this year, Filinvest Development Corp. inaugurated its first utility-scale solar power facility in Misamis Oriental, a 20.74-MW plant expected to generate about 30.2 million kilowatt-hours of electricity annually.
“These investments show how renewable energy can strengthen energy security, support sustainability, and enhance regional competitiveness,” Fajardo said. “More importantly, they signal growing investor confidence in Mindanao’s future as a destination for industry and innovation.”
She added that as the Visayas and Mindanao continue to emerge as major centers for industrial growth, technology, and clean energy development, strengthening grid resilience through battery storage, transmission expansion, and microgrid investments will be essential to sustaining long-term economic growth and attracting future investments.
Source:
https://cebudailynews.inquirer.net/741199/more-bess-expected-in-visayas-and-mindanao
https://www.sunstar.com.ph/amp/story/cebu/grid-reliability-emerged-as-key-energy-concern