Meralco PowerGen Corp. (MGEN), the power generation arm of Manila Electric Co., has switched on its Toledo Battery Energy Storage System (BESS) project in Cebu, giving the Visayas grid added stability as power demand rises and renewable energy capacity expands.

The company said Friday the project is the first two-hour battery energy storage system facility in the Visayas, designed to deliver continuous rated output for two hours before recharging. 

Developed through Toledo Energy Development Corp., MGEN’s thermal subsidiary, the facility delivers 25 megawatts (MW) and 56.44 megawatt-hours (MWh) under Phase 1 operations. 

Phase 2, which will match the same capacity, is targeted for completion by June 2027, subject to regulatory clearances.

“The MGEN Toledo BESS is expected to play a critical role in supporting the stability of the Visayas grid and in advancing the energy transition.

By helping manage fluctuations during peak and off-peak hours, the facility will contribute to maintaining reliable power delivery and improving overall grid resilience,” MGEN Thermal President and CEO Felino M. Bernardo said.

The facility uses lithium-ion battery technology to store electricity sourced from renewable and conventional power plants through the Wholesale Electricity Spot Market, which allows stored energy to be deployed when the grid needs support.

On top of storing electricity, the Toledo BESS can provide ancillary services that help balance supply and demand more quickly and efficiently, improving the grid’s response to sudden fluctuations.

“Cebu is a key demand center in the Visayas and an important part of the MGEN portfolio. The energization of the Toledo BESS marks an important milestone for the Visayas grid and reflects MGEN’s continuing commitment to support a more reliable, resilient, and sustainable energy system. 

We view this as a meaningful step forward for the region’s energy system, and MGEN is proud to support Cebu’s continued growth while helping power a better tomorrow,” MGEN President and CEO Emmanuel V. Rubio said.

The Toledo BESS is MGEN’s second battery storage project in the country. Its planned MTerra Solar project in Nueva Ecija includes a 4,500-MWh energy storage system designed to support a 3,500-megawatt-peak solar pipeline in Luzon.