Meralco PowerGen Corporation (MGEN) said its subsidiary Toledo Energy Development Corp. has signed an engineering, procurement, and construction (EPC) contract with Contemporary Amperex Technology Co., Ltd. (CATL) and SUMEC Complete Equipment and Engineering Co., Ltd. to build a 49-megawatt battery energy storage system (BESS) in Toledo, Cebu.

Construction and installation are slated to begin within September 2025. The first phase will deliver 25 MW by the second quarter of 2026 to help balance supply on the Visayas grid, with the remaining capacity targeted for completion in 2027, subject to regulatory clearances, MGEN said.

CATL will supply its battery technology for the Toledo BESS, while SUMEC will lead EPC execution.

“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.”

SUMEC Philippines General Manager Lennon Zong added: “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,”

MGEN said the project is intended to enhance grid flexibility and reliability and support the country’s energy transition by enabling more renewable energy to come online.