The Department of Energy (DoE) said the successful privatization of the Caliraya–Botocan–Kalayaan (CBK) Hydroelectric Power Plant Complex strengthens power sector stability and competition, while helping keep electricity reliable for consumers.

The DoE said Tuesday that closing the CBK sale between the Power Sector Assets and Liabilities Management (PSALM) Corp. and the Thunder Consortium supports the government’s power sector reforms under the Electric Power Industry Reform Act (EPIRA).

Successful sale

“This successful sale affirms EPIRA’s privatization program and reinforces our commitment to transparency and genuine competition in managing national assets,” Energy Secretary Sharon S. Garin said.

She added that the DoE is backing PSALM as it carries out reforms focused on consumers.

Well-executed privatization

“The DoE stands firmly with PSALM in carrying out its mandate. A well-executed privatization supports sector stability and helps keep electricity service reliable and competitive for consumers,” Garin added.

The Thunder Consortium — made up of Aboitiz Renewables, Inc., Sumitomo Corporation, and Electric Power Development Co., Ltd. (J-POWER) — won the bid on 4 July with an offer of more than P36 billion for the CBK complex.

The DoE said proceeds from the sale will be used under EPIRA to settle PSALM’s financial obligations and help shore up the power sector.

One of the country’s major renewable energy assets, the CBK complex supplies reliable power to the Luzon Grid and provides flexibility that helps balance the changing power mix.