The Energy Regulatory Commission has approved Energy Development Corp.’s (EDC) application to build a P700 million facility connecting its 20-megawatt
The Energy Regulatory Commission has approved Energy Development Corp.’s (EDC) application to build a P700 million facility connecting its 20-megawatt Bac-Man battery energy storage system project in Albay to the Luzon power grid.
The commission authorized EDC to “develop and own the dedicated point-to-point limited transmission facilities” to connect its Bac-Man battery energy storage system to the grid. This connection will be made via a direct link to EDC’s 230-kilovolt Palayan binary switchyard.
The ERC did not approve a second facility in EDC’s application, stating it was not a dedicated, limited transmission facility.
In its filing, EDC said the connection assets are “indispensable” for the commercial operation of the project. The company plans to fund the project with 70 percent debt and 30 percent equity.
The Lopez-owned geothermal subsidiary said it is developing the BESS to provide a flexible and responsible solution for integrating intermittent renewable energy sources into the grid.
“This helps maintain grid stability, improve power plant efficiency, and maximize the utilization of clean energy,” EDC said.
It said BESS smooths out the fluctuations in power supply, ensuring a more consistent flow of power to the grid.
EDC noted the need for a BESS to store energy that would otherwise be curtailed due to grid limitations or excess supply, allowing it to be released later when needed.
“Further more, the project can provide grid frequency regulation, which can help stabilize the grid.
