ACEN Corp. has secured a P2.925-billion project financing facility from Bank of the Philippine Islands (BPI), providing fresh capital to support the development of a battery energy storage project that will strengthen its energy hub in Zambales.

In a disclosure on Friday, the Ayala-led energy company said its subsidiaries, Palauig Solar 1 Inc., as borrower, and Gigasol2 Inc., as share collateral grantor, completed the signing of the financing facility with BPI as lender and BPI Asset Management and Trust Corp. as collateral trustee.

ACEN said the proceeds will be used to “partially finance the Palauig 1 Energy Storage System (ESS) Project, which is a 35-megawatt (MW) ESS facility to be located adjacent to and integrated with the existing 63-MW Palauig 1 Solar Power Plant in Barangays Salaza and Cauyan, Municipality of Palauig, Province of Zambales.”

The battery project will allow ACEN to store solar power when supply is abundant and discharge it when demand is higher, improving grid reliability and maximizing the use of renewable energy.

Part of the loan will also be used to “refinance or repay advances from shareholders for the construction and development of the Palauig 1 Solar Power Plant and/or the Palauig 1 ESS Project.”

By year-end, ACEN expects to operate more than 8 gigawatts (GW) of capacity, with roughly 15 percent coming from solar, wind, and battery projects in the Philippines and overseas.

Now running entirely on renewable energy, the company is targeting net-zero greenhouse gas emissions by 2050.