The Thunder Consortium on Monday confirmed it received a notice of award for its bid on the 796.64-megawatt Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants from the Power Sector Assets and Liabilities Management Corp. (PSALM).
The consortium, made up of Aboitiz Power Corp. wholly-owned subsidiary Aboitiz Renewables Inc. (ARI), Sumitomo Corp. and Electric Power Development Co. Ltd. (J-Power), received the notice of award on July 18, 2025. It was the winning bidder for the sale and privatization of the CBK power plants.
“The Thunder Consortium will undergo the post-award processes required by PSALM,” AboitizPower said in a statement.
“ARI represents the company’s investments and interests in various renewable energy projects, including geothermal, large hydro, run-of-river hydro, wind, battery energy storage systems and solar projects.”
The Thunder Consortium, which offered the highest bid of P36.266 billion for the CBK hydro facility, is expected to pay the government this year.
AboitizPower said Thunder Consortium is honored by the opportunity to manage and operate CBK, noting it will help support the country’s aspirations for a cleaner and more dynamic grid.
“Pump storage hydro is an integral part of the Philippine energy system,” the company said.
“As a clean energy resource, it can reduce peak power prices and support deeper penetration of variable renewable energy (RE) in our energy system, well-aligned with the Philippine Energy Plan’s aspiration of 50 percent RE in the power mix by 2040.”
The consortium congratulated PSALM on successfully conducting the competitive bid, fulfilling its mandate and effectively generating additional fiscal resources for nation-building.
PSALM manages the assets and liabilities of National Power Corp. as mandated by the Electric Power Industry Reform Act of 2001.
The Department of Energy (DOE) previously stated the sale of CBK will 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 added that aside from delivering immediate debt relief to PSALM, the proceeds of the sale will ensure the facility receives the investment and expertise needed for long-term reliable operations.
The CBK complex plays a crucial role during peak demand periods and emergency situations. It supplies a significant share of the electricity used in Metro Manila, the country’s largest and most energy-intensive consumption center.
Beyond immediate debt relief, the privatization creates long-term economic benefits through improved grid stability, reduced government contingent liabilities and enhanced energy security. The transaction also demonstrates the Philippines’ commitment to private sector participation in infrastructure development.
