Off grid storage, Mindoro, Philippines
Problem
build a financial model for storage in an area outside the main transmission grid, under the small island and isolated grid operator framework.
Work
- analysed the published 2025 to 2034 ancillary services procurement plan to extract storage eligible procurement rates by service type and grid region, assessed modular architecture, island logistics for heavy equipment, resilience and remote operation requirements, handled contract authentication and storage specific translation, and identified local assumptions requiring verification.
2.08 to 2.20pesos per kilowatt hour
No storage dispatchable reserve contract existed as a precedent, so regulator approved rates had to serve as the baseline. Regulating reserve rates, at roughly 2.08 to 2.20 pesos per kilowatt hour, sat above contingency reserve rates at 1.25 to 1.50, and the off grid framework tends to price above on grid benchmarks.
Consequence
the model states its baseline as a regulatory document rather than a market price, and flags that assumption on the front page rather than in an appendix.