AboitizPower Breaks Ground on 60-MW Naga Battery Facility to Steady Cebu's Power Supply

NAGA CITY, Cebu — Aboitiz Power Corporation (AboitizPower) broke ground on July 1, 2026 on a 60-megawatt Battery Energy Storage System (BESS), a project designed to smooth out the swings in electricity supply that have long troubled Cebu and the wider Visayas grid.

Naga BESS represents transformation in action.

— Celso C. Caballero III

President, AboitizPower Transition Business Group

The standalone facility, built within the Naga Power Plant Complex in Barangay Colon, is scheduled to begin commercial operations by October 2027. It can later be expanded to as much as 120 megawatt-hours.

Think of a BESS as a giant power bank for the grid. It stores excess electricity when supply is plentiful, then releases that power in an instant when demand spikes or generation suddenly drops. That quick response is exactly what Cebu needs.

“It will be operational on its own,” said Rhea Navarro, AboitizPower Transition Business Group Regional Chief Operating Officer for Visayas. “You charge it in the grid during the time when there’s an excessive supply. You charge it there, and then you release the energy during the periods when the supply is low and the demand is high.”

Unlike conventional power plants that take time to ramp up, a battery system responds within milliseconds. That speed makes it a valuable tool against the region’s recurring yellow alerts.

Powering a more reliable Visayas Grid

The Visayas grid has faced a string of yellow alerts since March, triggered by thinning reserves and unplanned plant outages. A yellow alert warns that operating reserves have fallen below the required level, raising the risk of power interruptions.

The Department of Energy sees battery storage as a direct answer to this problem.

“One of the concerns today is the recurring yellow alerts. If we have more battery facilities, we can reduce those occurrences,” said DOE Undersecretary Mario Marasigan. He added that the region needs far more capacity: “We are looking at a minimum of 200 megawatts of additional battery storage technology for the entire Visayas.”

Roughly 50 megawatts of battery storage currently operate in the Visayas, with another 350 to 400 megawatts under development. The Naga project is AboitizPower’s second such facility in Cebu, following its BESS at the East Asia Utilities Corporation complex in Mactan, which is mechanically complete and awaiting final regulatory clearances.

From Legacy Power Plant to Energy Transition Hub

The groundbreaking also marks a milestone for the Naga site. Once home to coal and diesel-fired units built by the National Power Corporation in the 1980s, the complex was acquired by AboitizPower in 2018. Those legacy units have since been decommissioned and demolished, clearing the way for cleaner energy storage.

“Naga BESS represents transformation in action,” said Celso C. Caballero III, President of AboitizPower Transition Business Group. “It reflects our efforts to strengthen the energy system by investing in people, infrastructure, and technology, to enhance the flexibility, resilience, and reliability of the grid.”

For Cebu, reliable power carries real economic weight. Cebu Gov. Pamela Baricuatro underscored the need to keep the province ready for growth.

“We must also strengthen the systems that keep our homes, businesses, hospitals, schools, and industries running,” she said.

As more solar and other renewable projects connect to the grid, batteries like Naga BESS will play a growing role in keeping the lights on across the Visayas.

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