Manila: A quiet revolution is churning in the Philippines. It’s fuelled by water.
Long overlooked as an energy powerhouse, the country is now making waves with pumped-storage hydroelectric power (PSHP), drawing in billions from some of its wealthiest clans.
At the heart of this energy gold rush is the 797-megawatt Caliraya-Botocan-Kalayaan (CBK) hydropower complex in Laguna.
The system, first energised in 1983, is South-east Asia's oldest such facility. It has two giant "penstocks".
The penstocks (floodgate for regulating water flow) are 6 metres in diameter each, and run 1,300 metres downstream, from Caliraya Lake in Quezon, to Laguna Bay.
The bay, which adjoins Manila, is a 911.7-km² lake, the Asian nation's biggest freshwater source (with an area bigger than Singapore).
The penstocks, anchored by six concrete blocks at slope changes and supported by saddles, make huge drop -- carrying a massive gush of water that drives power turbines.
This 42-year-old facility is a silent, clean and renewable electricity generator.
**More pumped hydro power projects**
More such projects are in the pipeline, mostly through a public-private partnership (PPP) funding, in which the Filipino taxpayers pay zero for their construction.
Once these mega proects go online, they could bolster the country's energy security.
The government-run Power Sector Assets and Liabilities Management Corp. (PSALM) recently held a pre-proposal conference, and the room was packed with heavyweights.
Nine major players — both local conglomerates and foreign firms — are vying for control of the country’s only operating pumped-storage facility.
Among the contenders are industry titans: Ayala-led Giga Ace 11 Inc., First Gen Prime Energy of the Lopez Group, San Miguel Global Power under tycoon Ramon Ang, Semirara Mining and Power of the Consunji family, and Enrique Razon Jr.'s Prime Infrastructure Capital Inc.
The foreign interest is just as formidable, with Tokyo-based Marubeni Corp., Korea Water Resources Corp., and I Squared Capital-backed Hexa Philippines Holdings Inc. throwing their hats in the ring.
The Thunder Consortium — a powerhouse alliance of Aboitiz Renewables Inc., Japan’s J-Power, and Sumitomo Corp. — is also making a strong bid.
The Philippines, long a laggard in power investments, has finally gotten its act together, starting with crucial legislative reforms.
With at least 421 rivers crisscrossing the country — and countless mountain streams swelling in the rainy season — there's no shortage of hydropower potential.
Now, the focus is on unlocking this “free” energy by harnessing these waterways with cutting-edge turbines to generate gigawatt-hours of electricity.
The CBK privatisation, which was supposed to happen last year, hit a roadblock when the government scrapped the initial auction to reassess its assets.
Now, with Finance Secretary Ralph Recto pushing the sale, PSALM aims to generate up to Php100 billion ($2 billion) — funds that will help plug the country’s chronic budget deficit.
As the June 16 bid submission deadline looms, the competition is heating up.
The winner will inherit CBK’s facilities in Lumban, Majayjay, and Kalayaan, but they’ll have to take them “as is, where is.”
That means embracing the risks and rewards of an asset whose 25-year build-rehabilitate-operate-transfer (BROT) contract expires in 2026.
With private-sector giants betting big on pumped hydro, the Philippines is no longer just dipping its toes in the renewable energy pool—it’s diving in headfirst.
Why the Philippines is pushing pumped storage hydro-electric power?
There’s a rise in data centre power demand, domestic power demand especially for cooling and electricity demand by industry for marked rise in manufacturing.
The bid proposal submission date is on June 16.
The pre-proposal conference provided interested bidders with a comprehensive overview of the project, the bidding process and the agreements involved in the CBK sale.
“We aim to inform interested companies ahead of time of the documentary requirements to successfully participate in the bidding process for the CBK power plants,” said Arnold Francisco, PSALM vice president for privatization and asset management.
“This conference is also an opportunity for parties to inquire on any lingering issue regarding the bidding for CBK,” he said.
**Key pumped-storage hydro projects**
The Philippines is actively developing its pumped hydroelectric power generation capacity through several key initiatives:
1. **Kalayaan Pumped Storage Power Plant (KPSPP):** Established in 1983, the KPSPP was the first of its kind in Southeast Asia and remains the only operational pumped storage facility in the Philippines. Located in Laguna, it currently has a capacity of 797 MW. [](https://www.cbkpower.com/project/kalayaan-pumped-storage-power-plant-kpspp/?utm_source=chatgpt.com)
2. **Pakil Pumped Storage Hydroelectric Power Project:** This upcoming project in Laguna is set to become one of Asia's largest pumped storage facilities, boasting a storage capacity of 14,000 MWh per day and a generating output of 1,400 MW. It is scheduled to commence operations by 2030, as per the Mace Group.
3. **Wawa Pumped Storage Hydroelectric Power Project:** Targeted for commercial operations by 2029, this project will have a storage capacity of 6,000 MWh per day and a generating output capacity of 600 MW. [](https://www.macegroup.com/news/mace-partners-with-prime-infra-to-deliver-hydro-power-projects-in-the-philippines/?utm_source=chatgpt.com)
4. **Aklan Pumped-Storage Hydro Power Plant Project:** Developed by Strategic Power Development Corp. (SPDC), this proposed 300 MW project aims to enhance the country's renewable energy infrastructure, as per the Global Energy Monitor.
5. **Seawater-Based Pumped-Storage Hydropower Plant:** Repower Energy Development Corp. (REDC) is pioneering the construction of a 320 MW pumped-storage hydropower plant in Real, Quezon province, utilising seawater—a first in the Philippines.
The Philippines is actively pursuing the development of pumped hydroelectric power to address several critical energy challenges.
The energy sector is also poised to face the growing demands across various sectors, including power-hungry data centres.
These initiatives underscore the Philippines' commitment to expanding its renewable energy portfolio and enhancing energy storage capabilities through pumped hydroelectric power generation.
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