Aboitiz Power Corp. (AboitizPower), through its subsidiary Therma Marine Inc. (TMI), has started the construction of a 48-megawatt (MW) Nasipit Hybrid Energy Storage System (BESS) to further expand its local portfolio.

The company said on Tuesday that the project, which will be integrated into its oil-fired power facility, TMI Mobile 2, in Lawis, Sta. Ana, Nasipit, Agusan del Norte, is scheduled to come online by the second quarter of 2026.

“Once completed, the Nasipit BESS project will help enable more grid stability and support the growing share of renewable energy in our grid.

It’s a smart solution for a smarter energy landscape,” said AboitizPower Transition Business Group COO for Operated Assets Ronaldo Ramos during a recent groundbreaking ceremony.

The BESS will store surplus electricity in a set of batteries and release it when needed to augment supply or improve power quality in the grid.

The systems are designed to support ancillary services, or backup power, which help ensure grid stability.

AboitizPower first introduced its hybrid BESS model through a facility installed at TMI Mobile 1, an oil-fired power plant in Maco, Davao de Oro. The plant began commercial operations in 2022.

The project aligns with the company’s goal to expand its generation portfolio with more renewable energy and selected baseload developments to help achieve the country’s energy transition targets.

AboitizPower has over 1,000 MW of disclosed renewable energy projects in its pipeline, spanning solar, hydro, geothermal, wind, and energy storage. It aims to add 3,600 MW of new renewable capacity and achieve a balanced 9,200-MW portfolio by 2030, with at least 50 percent from clean energy sources.