In May 2026, the Philippine electricity market completed a landmark transaction - the privatization of the 796.5MW Calilaya Botokan Karayan (CBK) hydroelectric complex officially landed, with equity transferred to Cleanergy 9 Power Inc, with a transaction amount of 36.266 billion Philippine pesos, approximately 640 million US dollars.

This is the first hydroelectric asset privatization project in the Philippines that includes a large-scale pumped storage power station. According to data from the Philippine Department of Energy at the beginning of 2026, the installed capacity of renewable energy in the country has exceeded 16GW, accounting for nearly 45% of the total installed capacity. However, the flexibility resources of the power grid are seriously insufficient, and the annual increase in auxiliary service costs exceeds 15%. The change of ownership of CBK is timely.

Southeast Asia's oldest pumped storage power station changes ownership

The CBK hydropower station group is located in Laguna Province, Luzon Island and consists of four power stations. The Botokan Hydropower Station was built in 1930 and has been in operation for nearly a century; The Kalilaya Hydroelectric Power Station was built in 1942 and is one of the oldest hydroelectric power stations in the Philippines; Karajan No.1 and No.2 pumped storage power stations were built in 1982 and 1983 respectively, with a total capacity of 734.36MW. They are the oldest and only large-scale pumped storage power station in operation in Southeast Asia and the Philippines.

$640 million purchase of power grid stabilizer

This transaction was won by the "Thunder Consortium", consisting of members such as Aboetis Renewable Energy Company in the Philippines, Sumitomo Corporation in Japan, and Nippon Power, with Synergy Consulting serving as the Chief Financial Advisor. The transaction lasted for six months: the preferred bidder was selected in July 2025, commercial delivery was made in August, final procedures were completed in December, and the transfer was officially made in February 2026.

The cost of ancillary services in the Philippine electricity market has continued to rise in recent years, and with the expansion of new energy installed capacity, the demand for dispatchable and highly flexible power sources in the power grid has surged. Synergy Consulting pointed out that pumped storage has been upgraded from a simple power generation asset to a strategic core asset that ensures the reliability of the power grid. The current global valuation of pumped storage assets has generally increased by 20% -30%, and CBK trading is a direct reflection of this trend. Keywords: hydropower, Southeast Asian news

The CBK project is a key part of the Philippines' electricity privatization plan, which not only revitalizes existing assets and recovers funds for the government, but also introduces private technology and capital to improve operational efficiency. According to the Philippine Department of Energy's plan, the national pumped storage target is to reach 2GW by 2030, with CBK's 734MW accounting for over one-third. Its successful transaction will provide a replicable commercial model for subsequent projects and set a precedent for the wave of hydropower privatization and energy storage in Southeast Asia.Editor/Cheng Liting