Shell advances 30-MW battery storage project in the Philippines

Shell Energy Philippines (SEPH) has taken a significant step forward in the country's renewable energy landscape by awarding contracts for the engineering, procurement and construction (EPC) and operation and maintenance (O&M) of its 30-MW/60-MWh Hermosa battery energy storage system (BESS) project. The move underscores the company's commitment to bolstering grid resilience and supporting the integration of intermittent renewable power sources in the Philippines.

The Hermosa project, located in the province of Bataan, is designed to store 60 megawatt-hours of electricity, providing critical grid services such as frequency regulation and peak shaving. By advancing this initiative, SEPH aims to address the growing demand for reliable and flexible power as the country expands its renewable energy capacity. Battery storage is increasingly viewed as a vital complement to solar and wind projects, which depend on variable weather conditions.

The contract awards mark a key milestone in the project's development timeline, moving it from planning into active execution. While SEPH has not disclosed the value of the contracts or the names of the selected contractors, the company said the partners were chosen for their technical expertise and proven track record in delivering utility-scale energy storage systems. The project is expected to be completed in phases, with commercial operation targeted within the coming years.

Industry analysts note that the Hermosa project aligns with broader trends across Southeast Asia, where governments and private firms are investing heavily in energy storage to modernize aging grids and meet ambitious decarbonization targets. The Philippines, in particular, has set a goal to increase the share of renewable energy in its power mix, and storage systems are seen as essential to ensuring stability as more renewables come online.

For Shell, the project reinforces its strategy to build a global integrated power business, leveraging low-carbon technologies to meet the energy needs of a rapidly evolving market. The company has been expanding its presence in Asia's emerging energy markets, and the Hermosa battery is a tangible example of how traditional energy players are pivoting toward cleaner, more flexible solutions.