THE privatization of the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex in Laguna will be pursued by April, according to the Department of Energy (DOE).
The agency said in a briefing Wednesday in Taguig City the plan can now proceed as the auction proper of the third round of the Green Energy Auction (GEA-3) has been scheduled for next month.
The DOE said the GEA-3 must first be completed before the plant privatization as its pricing will be affected, since both auctions will involve pumped hydro power plants.
DOE Secretary Raphael Lotilla said the issue that needed attention was how to maximize the value of CBK.
Lotilla said while the Power Sector Assets and Liabilities Management Corp.could have privatized it without GEA-3, the Department of Finance (DOF) was focused on increasing CBK’s privatization value, which is why the process was delayed,
CBK is comprised of three separate hydro facilities with a contracted capacity of 796.64 megawatts (MW). It is currently run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer contract which will expire in 2026.
Last year, DOF Secretary Ralph Recto said CBK’s privatization is expected to “generate anywhere from P50 billion to P100 billion.”
“GEA-3 can dictate the price per kilowatt hour of upcoming pumped storage hydro plants and CBK is also a pumped storage hydro,” DOE Undersecretary Rowena Cristina Guevara also said.
GEA-3 currently has a total installation target of 4,650 MW.
Capacities to be auctioned off are 300 MW for impounding hydro projects throughout the country that must be operational between 2028 to 2030 and another 100 MW in geothermal projects in the entire country that must be running between this year to 2027.
The remaining 4,250 MW capacity under GEA-3 are pumped storage hydro, broken down into 2,000 MW in Luzon that must run from 2028 to 2030; another 2,000 MW also in Luzon that must operate by 2031 to 2032; and 250 MW in Mindanao which should be completed by 2031 to 2035.
Under the current setup of GEA, interested renewable energy producers compete for incentivized fixed power rates by offering prices that are lower than or equal to reserve prices set by the Energy Regulatory Commission.
