TOWARD reliable, affordable power for the Philippines President Ferdinand R. Marcos Jr., seen here with Aboitiz Equity Ventures CEO Sabin Aboitiz, leads the turnover of the Caliraya–Botocan–Kalayaan Hydroelectric Power Plants (inset) on 9 February, a step towards a more stable, modern and future-ready energy system. The CBK complex, one of Luzon’s largest hydropower facilities with a capacity of 797 megawatts, plays a key role in balancing electricity supply and supporting renewable energy integration.The acquisition by Aboitiz Renewables of the 797-megawatt Caliraya-Botocan-Kalayaan Hydroelectric Power Plant (CBK-HEPP) would ensure a stable and reliable power supply for the Luzon grid, President Ferdinand Marcos Jr. said on Monday.

In July 2025, the plant’s privatization was won by the Thunder Consortium — a partnership between Aboitiz Renewables and Japanese firms Sumitomo Corporation and Electric Power Development Co. Ltd. (J-POWER). The Philippine Competition Commission approved the acquisition of CBK-HEPP’s hydroelectric and pumped storage assets in November 2025.

During yesterday’s formal turnover, Marcos said the acquisition aligns with the government’s ongoing efforts to strengthen the country’s energy systems, ensuring reliable and affordable power for the people.

“We, in government, continue to strengthen the systems in our energy sector — by improving policies, processes, and partnerships to ensure that energy reliability and affordability are sustained in the long term,” the President said at the turnover in Kalayaan, Laguna.

“Building on the strength of both the public and private sectors, we encourage collaborations that safeguard the public interest while promoting transparency and accountability,” he added.

The CBK facilities pump water to an upper reservoir using excess power during off-peak hours and release it to generate electricity when demand is high, allowing cleaner energy to operate reliably at scale.

“These form a system designed not just to generate power, but to balance the supply and demand across the power system,” the President pointed out.

He said that modernizing and upgrading these facilities will bring benefits beyond the grid, positively affecting the lives of Filipinos.

As the CBK facilities operate, the President said this means fewer power interruptions for households, fewer service disruptions for hospitals and schools, as well as time saved and additional productivity and opportunities for workers and entrepreneurs.

Marcos also noted that the turnover of the CBK-HEPP to the Thunder Consortium marks a deliberate step toward an energy system that is steadier in operation and smarter in design.

The CBK-HEPP is one of Luzon’s largest hydropower complexes, with a total capacity of 797 megawatts. It consists of three distinct yet complementary facilities, each designed to serve a specific and practical purpose.

The Caliraya power plant is an impounded water system, while the Botocan plant operates as a run-of-river system. The Kalayaan plant, meanwhile, functions as a pumped-storage facility.

Consortium affirms readiness

Meanwhile, Aboitiz Equity Ventures president and CEO and AboitizPower chairman Sabin Aboitiz said the consortium is prepared to operate the facility and support the country’s energy needs.

“It provides flexibility, stability, and resilience in a rapidly changing energy system. It allows us to manage peaks in demand, support reserves, and integrate more renewable energy into the grid without compromising reliability. And as we add more solar and wind into the system, facilities like CBK become even more critical,” according to Aboitiz, DAILY TRIBUNE’s Filipino of the Year 2025.

The CBK-HEPP Complex — particularly its Kalayaan pumped-storage units — also serves as a critical energy buffer for the Luzon grid.

Its ability to store energy and rapidly dispatch power strengthens system stability, provides essential ancillary services, and supports the integration of renewable energy sources.

As the country expands its clean energy portfolio, the facility will play a key role in maintaining grid reliability and preventing power outages.

For Aboitiz Renewables, the acquisition of CBK significantly expands its hydropower portfolio and adds a massive pumped-storage asset to its renewable energy mix. This move aligns with AboitizPower’s strategy to grow its renewable energy capacity and strengthen its long-term, stable power generation base.

The takeover also marks one of the largest hydropower acquisitions in the country, reinforcing AboitizPower’s role in supporting the Philippines’ long-term clean energy transition.