SMC unit puts up energy storage systems

SMC Global Power Holdings Corp., a wholly-owned subsidiary of conglomerate San Miguel Corp. (SMC), is investing heavily in battery energy storage systems (BESS), which store energy to be used at a later time.

The company has identified 31 sites all over the country for its BESS projects that can store a total of 1,000megawatts-hour (MWh).

In Luzon, 18 BESS will be put up. These will have a total of 720MWh capacity.

Eight BESS, with a capacity of 190MW, are being constructed in Visayas.

In Mindanao, there are five BESS being put up with a total capacity of 90MW.

Substantial completion of 15 BESS projects, with 470MWh of capacity, is being eyed between the last quarter of this year up to the first quarter of next year.

Sixteen BESS projects, with 530MWh, would be substantially completed in the second up to the fourth quarter of 2021.

Substantial completion means that all facilities would have been tested and commissioned within the period.

Currently, there are four BESS projects that are in advance stages of construction. These are located in Pangasinan, Davao, Cebu and Bataan.

The power firm have partnered with leading BESS EPC (engineering, procurement and construction) contractors such as Wartsila, ABB and Fluence. The company has also signed a deal with battery module manufacturer Samsung SDI.

Aside from the 31 BESS projects, it has identified 12 more sites where it can put up more BESS with 400 to 500MWh of capacity. These sites, which  are currently being evaluated, are near the substations of the National Grid Corp. of the Philippines (NGCP) and in areas where frequency regulation may be necessary.

BESS has been classified by the Energy Regulatory Commission (ERC) as a new source of Frequency Control Ancillary Services (FCASs).

FCASs are required by NGCP to ensure supply and demand balancing in the power system. The system frequency is the fundamental indicator of the real time condition of the power system as it provides an immediate indication of the balance between generation and load.

The ERC said frequency drops when load exceeds generation and rises when generation exceeds load. Large frequency deviations result in equipment damage and power system collapse. To avoid this, adequate reserves suitable for various contingencies are needed by the system and small, manageable frequency deviations must be corrected immediately.

SMC Global Power said it sees “a massive and timely” opportunity for BESS. The company also sees an opportunity to contract more than 2,200MW in capacity across the country via Ancillary Services Procurement Agreement (ASPA) deals. Of this, around 1,300MW are for frequency regulating reserves.

“Frequency is crucial to power systems. Currently, the grid is highly susceptible to automatic load shedding and frequency violations beyond limits. To maintain grid reliability and stability, and prevent dropping and blackouts, the grid requires AS [ancillary services], particularly regulating reserves, to maintain frequency every second,” it said in a report.