July 10, 2025
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DOE Touts CBK Privatization, Eyes Pumped Storage as Key to Energy Future

  • July 10, 2025
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DOE Touts CBK Privatization, Eyes Pumped Storage as Key to Energy Future

The Department of Energy (DOE), in a media conference on Wednesday, emphasized the importance of pumped storage hydroelectric facilities in ensuring the country’s long-term energy resilience. They specifically cite the successful privatization of the Caliraya-Botocan-Kalayaan (CBK) hydro plant as a case in point.

DOE Undersecretary Alessandro O. Sales said the CBK privatization exceeded expectations due to a revised policy approach that recognized the unique value of existing pumped storage assets. A department circular provided separate treatment and incentives for these facilities, enabling better valuation and investor interest.

“In fact, the bid was over our expectation,” Sales said during the media conference. “That’s what made it good.”

Sales also emphasized CBK’s potential for future repurposing, including its use as a support system for nuclear energy deployment. Pumped storage can provide crucial energy balancing capabilities, particularly during periods of low demand or intermittent renewable supply.

“It’s good that it’s been taken over and privatized already,” Sales added. “Because it can also be useful for nuclear power-as a form of safeguard.”

The DOE further explained that pumped hydro will play an increasing role in the country’s future energy mix. While new facilities won’t come online immediately, some are targeted to begin operation between 2028 and 2030, aligning with the grander Philippine Energy Plan.

“As renewable energy expands, we need storage at a certain percentage,” Sales continued. “It’s already being calculated into our 10-year energy outlook.”

The department assured stakeholders that pumped storage would complement the country’s push for a balanced and secure energy mix, which would be combining solar, wind, gas, coal, and nuclear- to ensure both sustainability and energy independence.

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