^{Aerial view of the Kalayaan Pumped Storage Power Plant in Laguna, a critical component of the Caliraya-Botocan-Kalayaan Hydroelectric Power Plants (CBK HEPP)}

The Philippine government has formally turned over the 797-megawatt Caliraya-Botocan-Kalayaan Hydroelectric Power Plant (CBK HEPP) Complex in Laguna to a consortium led by Aboitiz Renewables Inc.,  the renewable energy arm of AboitizPower, marking a major step in the privatization of one of Luzon’s most critical grid assets.

The Thunder Consortium–composed of Aboitiz Renewables, Japan’s Sumitomo Corporation, and Electric Power Development Co., Ltd. (J-POWER)—assumed stewardship of the hydro and pumped-storage facility following its winning bid under the Power Sector Assets and Liabilities Management Corporation’s (PSALM) privatization process in July 2025. The transaction secured clearance from the Philippine Competition Commission in November 2025.

The group last month disclosed that it had arranged up to PHP 70 billion in bridge loan facilities from local banks to support the acquisition.

The ceremonial turnover was led by President Ferdinand R. Marcos Jr., alongside PSALM officials, and was witnessed by Japanese Ambassador to the Philippines Endo Kazuya, other government representatives, and executives of the consortium partners.

At nearly 800 MW, the CBK HEPP Complex, particularly its Kalayaan pumped-storage units, is widely regarded as a backbone asset for the Luzon grid. Its ability to store energy and rapidly dispatch power allows it to provide ancillary services, support peak demand, and help stabilize the system as more variable renewable energy sources come online.

 “Today’s turnover of the Caliraya-Botocan-Kalayaan Hydroelectric Power Plant marks a deliberate step toward an energy system that is steadier in operations, smarter in design, and ready for the future that we are building,” President Marcos said. “A future where Filipinos can count on electricity that keeps pace with their needs and works without disruption. We thank the Thunder Consortium for taking on this responsibility with a clear commitment to long-term stewardship.”

Japanese Ambassador Endo described the transition as a milestone in Philippine-Japanese collaboration on renewable energy. “It is clear that this power plant is not merely an energy provider but a pillar supporting the country’s development. I would like to express my deepest respect to all those involved for their dedication, as well as my sincere gratitude to the Philippine government for its long-standing support,” he said.

President and CEO and AboitizPower Chairman Sabin Aboitiz said the facility strengthens the grid’s ability to absorb more renewables. “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,” he said.

The turnover represents one of the largest hydropower privatizations to date, generating additional fiscal resources while transferring long-term operational responsibility to the private sector. The acquisition significantly expands AboitizPower’s hydropower footprint and adds a large-scale pumped-storage asset to its portfolio.

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