AboitizPower assumes control of CBK hydropower complex

Aboitiz Power Corp. has taken the reins of the 797-megawatt (MW) hydroelectric power plant (HEPP) complex in Laguna. This is a “very strategic asset” that backs the build-out of more renewable energy facilities.

In a ceremonial turnover on Monday, President Marcos officially transferred the asset to the consortium led by AboitizPower. This happened almost seven months after the group won a bidding with its P36.266-billion offer.

The winning bidder is Thunder Consortium, composed of Aboitiz Renewables Inc., Sumitomo Corp. and Electric Power Development Co. The Aboitiz unit holds a controlling 64-percent stake in the consortium.

The CBK complex includes the 39.37-MW Caliraya HEPP in Lumban, and 22.91-MW Botocan HEPP in Majayjay, as well as the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage plants. These are all in Laguna.

“This plant is more than a power facility. It’s really a very, very strategic asset. It provides flexibility, stability and resilience in a rapidly changing energy system,” AboitizPower chair Sabin Aboitiz said during the ceremony.

He said CBK enables them to manage peaks in demand, support reserves and integrate more renewable energy into the grid without compromising reliability.

“As we add more solar and wind into the system, facilities like the CBK become even more critical,” he added.

Green power to grid

Mr. Marcos, meanwhile, said investors’ participation in the bidding mirrored their confidence in the current administration’s power ambitions.

“As we continue to diversify our energy sources, facilities like CBK help support renewable energy integration into the grid,” Marcos said.

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With a target to scale up renewables’ share in the electricity generation mix to 35 percent by 2030 from the current 22 percent, the government has been encouraging investors to explore opportunities in the local sector.

Last year, AboitizPower chief financial officer Sandro Aboitiz said the CBK facility would start contributing to its bottom line in 2026.

Analysts earlier said that it was a “significant win” for AboitizPower to further expand and diversify its generation portfolio.

But they also mentioned challenges in upgrading and optimizing the CBK facilities, given that they are old energy infrastructure. The power plant complex would also compete against newer plants.