The Power Sector Assets and Liabilities Management Corp. (PSALM) on Friday awarded the Caliraya-Botocan-Kalayaan (CBK) Hydroelectric Power Plants (HEPPs) to the Thunder Consortium, comprising Aboitiz Renewables Inc., Sumitomo Corp., and Electric Power Development Co.
“Today [Friday] is the issuance of the notice of award to the Thunder consortium,” PSALM president Dennis dela Serna said.
The Thunder Consortium submitted the highest offer of P36.266 billion for the 796.64-megawatt CBK hydro facility, and PSALM expects the payment this year.
The award follows a post-qualification endorsement by the Privatization Bids and Awards Committee and approval by the PSALM board on July 17, 2025.
PSALM’s Technical Working Group conducted a post-qualification evaluation on July 9, 2025, to verify the consortium’s submitted documents.
The Thunder Consortium has seven calendar days from the official receipt of the notice of award to accept, sign, and submit it to PSALM, which manages the assets and liabilities of National Power Corp. as mandated by the Electric Power Industry Reform Act of 2001.
“This milestone marks a significant step in PSALM’s privatization program, contributing to the government’s broader energy sector reform agenda. The successful sale of the CBK HEPP is expected to enhance operational efficiency and support the country’s renewable energy goals,” PSALM said in a statement.
The Department of Energy (DOE) earlier said the CBK sale would reduce financial burdens on Filipino taxpayers, strengthen the power sector, and support the 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 assistant secretary Mario Marasigan said, referring to the universal charge portion of the power bill.
The DOE said that beyond immediate debt relief for PSALM, the sale proceeds would ensure the facility receives the investment and expertise needed for long-term reliable operations.
The CBK complex is crucial during peak demand and emergency situations, supplying a significant share of electricity to Metro Manila, the country’s largest and most energy-intensive consumption center. The privatization, as envisioned under the EPIRA, aims to place the asset under private ownership to optimize its performance through technical and financial expertise.
The CBK privatization comes as the Philippines transitions from baseload thermal plants to cleaner renewable energy sources.
The DOE noted that with expanding solar and wind installations, the country faces challenges with the variability of these technologies and the mismatch between electricity supply and demand.
“The Kalayaan Pumped Storage Power Plant, 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 toward its renewable energy targets of 35-percent share in the power generation mix by 2030 and 50 percent 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.
