Psalm awards CBK assets to Aboitiz-led consortium
An Aboitiz-led consortium is one step closer to securing the critical power asset Caliraya-Botocan-Kalayaan (CBK) hydroelectric facility, after the government officially handed over the notice of award for its winning P36.266-billion bid.
Power Sector Assets and Liabilities Management (Psalm) Corp. said on Friday it had issued the notice of award to Thunder Consortium, composed of Aboitiz Renewables, Inc., Sumitomo Corp. and Electric Power Development Co.
This developed just two weeks after the Thunder Consortium emerged as the winning bidder for the 796.64-megawatt complex, beating the FWKG Consortium backed by Lopez-led First Gen Corp.
The notice of award came after Psalm conducted a post-qualification evaluation activity, wherein it confirmed the accuracy, authenticity and completeness of the qualification documents.
The Aboitiz-led group has seven days to accept the notice of award, it added in a statement.
Psalm said the sale of the asset would boost “operational efficiency and support the country’s renewable energy goals.”
In a message to the Inquirer, Dennis Edward Dela Serna, Psalm president and chief executive officer, said their target was to turn over the facility by February 2026.
Peter Garnace, equity research analyst at Unicapital Securities Inc., said Aboitiz Power (AP) should look into equipping the complex with a battery energy storage system to maximize the output of the 42-year-old facility.
“Aside from refurbishing to modernize and extend plant life, AP should also consider hybridizing the CBK hydropower complex by colocating battery energy storage system (BESS) to enhance its capacity and flexibility to deploy electrons to the grid,” Garnace told the Inquirer.
The analyst cited Aboitiz Power’s hydro-plus-battery hybrid facility in Isabela.
“Thunder Consortium can leverage AP’s operational experience and apply this proven model to unlock the full potential of the CBK Hydropower Complex,” he added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., meanwhile, said this was “a great opportunity,” especially as government policies and businesses are under pressure amid environmental and social responsibility goals.
“This is a relatively large hydropower facility that is rare in availability and supply, being a renewable energy source at that. It is also difficult and would require many years to build a relatively large hydro power facility from scratch,” he said.
Garnace also said that since CBK hydropower complex is the biggest government-owned hydropower plant—providing more than 4 percent of energy to the Luzon grid—Aboitiz would become the “largest hydropower operator in the Philippines.”
