RCBC backs Yuchengco BESS project in Capiz

MANILA, Philippines — The Yuchengco Group has secured P635.9 million in financing from its financial services arm Rizal Commercial Banking Corp. (RCBC) for its battery storage project in Capiz.

The omnibus loan and security agreement was signed with EcoSolar Energy Corp., a subsidiary of Yuchengco-led PetroGreen Energy Corp. (PGEC).

The project financing will support the construction of the 40-megawatt (MW)-hour battery energy storage system (BESS) in the municipality of Panitan.

“EcoSolar’s Panitan BESS project is being developed to help strengthen the stability and reliability of the Panay sub-grid,” said Maria Victoria Olivar, PGEC senior vice president for business development and commercial operations.

The BESS facility remains on track for physical completion next month, with testing and commissioning scheduled to begin in September.

“We are pleased to work with RCBC on this project, and we value their continued partnership in helping PGEC and EcoSolar deliver cleaner, more resilient and more dependable power infrastructure for the communities and industries we serve,” Olivar said.

For the loan, RCBC Capital Corp. has been tapped as the lead arranger, with RCBC Trust Corp. serving as the facility agent and security trustee.

“Through this financing, RCBC recognizes its role in supporting projects that mitigate rolling blackouts, address the intermittent nature of renewable energy and reduce the country’s reliance on fossil fuels,” said RCBC institutional banking group head Elizabeth Coronel.

“Our objective is to help provide Filipino households and industries with a more reliable, resilient and affordable power supply and support the nation’s climate goals,” Coronel added.

The Panitan BESS is situated near EcoSolar’s 100-MW-peak solar project, set to be completed by 2027.

This represents PGEC’s first BESS venture and the fourth PGEC project financed by RCBC and arranged by RCBC Capital over the past three years.

A BESS facility stores excess electricity generated during low-demand periods and supplies it back to the grid during peak demand, ensuring the stability and reliability of the transmission network.