The Power Sector Assets and Liabilities Management Corp. (PSALM) is set to issue the notice of award next week for the Caliraya-Botocan-Kalayaan (CBK) Hydroelectric Power Plants (HEPPs) to the Thunder Consortium, a group comprising Aboitiz Renewables Inc., Sumitomo Corp. and Electric Power Development Co.
PSALM identified the Thunder Consortium as the highest-ranking bidder after it offered P36.266 billion for the 796.64-megawatt CBK hydro facility.
“We expect to issue [the] NOA next week,” PSALM president Dennis de la Serna said when asked for an update.
The Department of Energy (DOE) said the sale of CBK would alleviate financial burdens on Filipino taxpayers, strengthen the power sector and support the country’s clean energy transition.
“It will bring immediate relief in our debts so that means the burden of that in our electricity bills may be eased,” DOE Undersecretary Mario Marasigan said, referring to the universal charge portion of power bills.
The DOE said that beyond providing immediate debt relief to PSALM, the proceeds from the sale would ensure the facility receives the necessary investment and expertise for long-term reliable operations.
The CBK complex is crucial during peak demand periods and emergency situations, supplying a significant portion of the electricity consumed in Metro Manila, the country’s largest and most energy-intensive consumption center.
The privatization of the CBK HEPP, as envisioned under the Electric Power Industry Reform Act (EPIRA), aims to place the asset under private ownership to optimize its performance through technical and financial expertise.
The DOE said the CBK privatization comes at a pivotal time as the Philippines transitions from baseload thermal plants to cleaner renewable energy sources.
As solar and wind installations expand nationwide, the country faces growing challenges due to the inherent variability of these technologies and the mismatch between electricity supply and demand.
“The Kalayaan Pumped Storage Power Plant [KPSPP], part of the CBK complex and currently the Philippines’ first and only operational pumped storage facility, plays a strategic role in addressing this challenge,” the DOE said.
The facility acts as a “rechargeable battery,” drawing electricity to pump water for storage during periods of excess renewable supply and releasing water to generate power during high demand. This capability is increasingly valuable as the Philippines works towards its renewable energy targets of a 35-percent share in the power generation mix by 2030 and 50% by 2040 under the National Renewable Energy Program (NREP). The facility also supports the DOE’s goal of reducing greenhouse gas emissions by 12 percent by 2040.
