Marcos: CBK hydropower to bolster Luzon grid stability

President Ferdinand Marcos Jr. on Monday assured that the acquisition of the 797-megawatt Caliraya-Botocan-Kalayaan Hydroelectric Power Plant (CBK HEPP) Complex in Laguna by Aboitiz Renewables, Inc., the renewable energy arm of Aboitiz Power Corporation (AboitizPower), means a reliable energy supply in the Luzon grid in the coming months and years.

To recall, the Thunder Consortium, composed of Aboitiz Renewables and Japanese firms Sumitomo Corporation and Electric Power Development Co., Ltd. (J-POWER), won the bidding process conducted by the Power Sector Assets and Liabilities Management Corporation (PSALM) for the CBK HEPP’s privatization in July 2025, with the acquisition of CBK HEPP’s hydroelectric and pumped-storage assets being approved by the Philippine Competition Commission in November of the same year.

At the turnover, the President said the acquisition goes along with the government’s continued quest to boost systems in the country’s energy sector to ensure power reliability and affordability for the benefit of 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,” President Marcos 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,” the President 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.

With investments to modernize and improve these facilities, President Marcos said the benefits will extend beyond the grid and impact 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.

The President 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 the largest hydropower complexes in Luzon, with an overall capacity of 797 megawatts, composed of three distinct but complementary facilities, each serving a clear 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 is expected to play a key role in safeguarding grid reliability and helping prevent power disruptions.

For Aboitiz Renewables, the acquisition of CBK significantly expands its hydropower portfolio and adds a massive pumped-storage asset to its renewable energy mix, aligning with AboitizPower’s strategy to expand 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.