Meralco PowerGen Corporation (MGEN) unit Toledo Energy Development Corporation has formally signed an Engineering, Procurement, and Construction (EPC) Contract with Contemporary Amperex Technology Co., Limited (CATL) and SUMEC Complete Equipment and Engineering Co. Ltd. (SUMEC) for the development of a Battery Energy Storage System (BESS) in Toledo, Cebu.

CATL, a global leader of new energy innovative technologies, will provide its advanced battery technologies for MGEN’s BESS project in Toledo, Cebu (Toledo BESS Project).

A leading global engineering solutions provider, SUMEC will contribute its expertise in project execution, ensuring the facility is completed on schedule and upholds the highest standards.

Together, their combined capabilities will enable the successful delivery of the Toledo

BESS Project, one that strengthens MGEN’s efforts to enhance grid stability and support the Philippines’ energy transition.

Construction and installation of the facility are set to commence within the month of September 2025. The first phase of the project is targeted to deliver an initial 25 MW by Q2 2026, providing reliable and balanced power delivery across the Visayas grid.

The remaining capacity is expected to be completed in 2027, subject to regulatory clearances.

Important step

“Our signing marks another important step in our efforts to strengthen the country’s energy system. With CATL and SUMEC as our partners, the Toledo BESS project will take shape with the benefit of proven expertise and world-class technology,” said MGEN president and CEO Emmanuel V. Rubio.

“We are proud to collaborate with MGEN and SUMEC — both are leaders in the energy industry with proven track record in delivering reliable solutions in the region,” said Zhu Wei, executive president of CATL. “Together with forward-thinking partners, we are ready to shape and strengthen a robust green energy system in the Philippines and Southeast Asia.”

Advancing clean energy

For his part, SUMEC Philippines General Manager Lennon Zong said, “This energy storage project is not just another venture — it is a testament to our shared commitment to advancing clean energy in the Philippines. By integrating advanced storage technology, we are not only enhancing grid stability but also ensuring that renewable energy can be supplied reliably, day and night. This step is crucial for reducing carbon emissions and building a resilient energy future for this nation.”

Once completed, the Toledo BESS project will significantly enhance grid flexibility and reliability, supporting the Philippines’ goal of expanding renewable energy capacity and ensuring energy security.

Meralco PowerGen Corporation operates a diverse portfolio of power generation assets equipped with advanced technologies. Its main subsidiaries include Global Business Power (MGEN Thermal), MGEN Renewable Energy Inc. (MGEN Renewables), and MGEN Gas Energy Holdings, Inc. (MGEN Natural Gas). Additionally, MGEN holds stakes in PacificLight Power (PLP), a Liquefied Natural Gas facility in Singapore, and SP New Energy Corporation (SPNEC), arenewable energy company.

Recently, MGEN has invested a 40.2 percent stake in an integrated LNG facility in Batangas, Philippines.

Across its portfolio, MGEN has a combined net sellable capacity of 5,068 MW from traditional and renewable sources as of July 2025.