Oslo-based renewable energy company Scatec ASA has announced that its joint venture with Filipino conglomerate Aboitiz Power has begun commercial operation of the Magat battery energy storage system (BESS) 2, a 16 MW facility connected to the existing Magat hydro power plant in the Philippines.

Second Battery System Expands Magat Footprint

The newly operational Magat BESS 2 joins an already-running 24 MW battery energy storage system that has been connected to the Magat hydro power plant since 2024.

With the addition of the 16 MW system, the joint venture now has 40 MWh of operating battery capacity at the Magat site. The partnership has a further 120 MWh under construction, according to the announcement made on 15 May 2026.

The Magat BESS 2 project is owned on a 50/50 basis between Scatec and Aboitiz Power and was financed through debt facilities associated with the Magat hydro power plant. No separate project financing arrangement was disclosed for the battery system itself.

Ancillary Services Market Drives Revenue Strategy

Both the existing and new battery systems are designed to generate revenues from what Scatec describes as the highly attractive ancillary services reserves market in the Philippines.

Ancillary services involve the provision of grid support functions, including fast response to fluctuations in grid frequency and flexibility to perform multiple grid services simultaneously.

Scatec stated that one-hour batteries are well-suited for ancillary services because of their fast response time, their operational flexibility across multiple grid services, and their cost competitiveness relative to other storage technologies.

The company also noted that ancillary services are expected to grow in importance in the Philippines as renewable energy penetration increases in line with the national government's renewable energy ambitions, though no specific government targets or timelines were cited in the announcement.

CEO Highlights Grid Reliability and Renewable Integration

Scatec chief executive Terje Pilskog said the commencement of commercial operations at Magat BESS 2 strengthens the company's position within battery storage and ancillary services in the Philippines.

He described the project as building on what he called the successful operating track record of the original Magat battery system and said it demonstrates the company's ability to develop flexible energy infrastructure that supports grid reliability and the integration of renewable energy projects.

Pilskog's comments pointed to the combined 40 MWh of currently operating capacity and the additional 120 MWh under construction as markers of the joint venture's growing presence in the Philippine battery storage sector.

Scatec's Broader Portfolio Context

Scatec describes itself as a leading renewable energy solutions provider focused on emerging markets. The company develops, builds, owns, and operates renewable energy plants across five continents.

As of the announcement date, the company reported 6.4 GW of generation capacity and 2 GWh of storage capacity in operation and under construction globally. Scatec is headquartered in Oslo, Norway, and is listed on the Oslo Stock Exchange under the ticker symbol SCATC.

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