The Department of Energy (DoE) said the privatization of the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant will help ease the government’s financial burden and improve grid reliability, especially during peak demand and emergencies.

The CBK facility, which supplies a large portion of Metro Manila’s electricity, was successfully bid out by state-run Power Sector Assets and Liabilities Management Corp. to Thunder Consortium — composed of Aboitiz Power Corporation, Sumitomo Corporation and J-Power — for P36.3 billion.

Key developments

“Key developments (in the energy sector include) the successful bidding for the CBK hydroelectric power plant by PSALM. This marks significant milestones in our transition towards a smarter, greener, and more resilient energy system,” Energy Secretary Sharon Garin told reporters.

Garin said the CBK plant will support the growth of solar and wind by providing large-scale storage and a stable power supply.

“The CBK plant will play a crucial role in enhancing grid flexibility, especially in supporting variable renewable energy resources such as solar and wind by enabling large-scale storage and reliable power dispatch,” she said.

Separately, Energy Assistant Secretary Mario C. Marasigan said the Kalayaan Pumped Storage Plant, part of the CBK complex, functions like a large battery — storing excess energy and releasing it during periods of high demand.

Respond better to market needs

Now under private operation, the facility can better respond to market needs, helping manage surplus solar power during the day while ensuring a stable supply when needed.

“Pumped storage acts like a big battery system. The advantage of pumped storage is that it can provide all the necessary ancillary services — not just regulating, contingency, and dispatchable requirements, but also black start capability,” Marasigan explained.

“It can fully serve our ancillary and reserve requirements, and at the same time, it can enter into power supply agreements,” he added.

The CBK plant operates under a 25-year build-rehabilitate-operate-transfer and power purchase deal with National Power Corp., set to expire in February 2026.