First Gen vying for 797-MW Laguna hydropower complex

MANILA, Philippines — First Gen Corp. of the Lopez Group is betting on another hydropower asset, this time the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna.

In an interview, First Gen president and COO Francis Giles Puno confirmed that they secured bidding documents for the privatization of the CBK complex.

CBK is the major privatization project of the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) this year.

The hydropower plant is currently under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between CBK Power Co. Ltd. and the National Power Corp. The contract will expire in February 2026.

“We continue to be interested because we just finished the Casecnan (plant) so that we can increase our (hydroelectric) facilities. CBK obviously is pump storage, and it will enable more renewable energy (RE) to come online,” Puno said.

In February, PSALM and the National Irrigation Administration handed over the ownership of the 165-MW Casecnan power plant to First Gen subsidiary Fresh River Lakes Corp. (FRLC).

FRLC bagged the power plant after topping PSALM’s auction last year with a $526-million offer, which was way above the government’s minimum bid price.

For the CBK complex, however, Puno did not reveal the amount First Gen was prepared to offer to secure the hydropower asset.

Last month, bourse debutant Citicore Renewable Energy Corp. of tycoon Edgar Saavedra told the Philippine Stock Exchange that it secured bidding documents for the CBK complex.

Finance Secretary Ralph Recto, chairman of the Board of Directors of PSALM, earlier said they expect to generate up to P100 billion from the CBK privatization to help plug the deficit of the cash-strapped state firm.

The project’s winning bidder is expected to be announced next year.

According to Puno, more investments in clean energy are needed to support the government’s ambitious target of expanding RE share in the country’s energy mix to 35 percent by 2030 and 50 percent by 2040.

As of 2022, the country’s RE only accounted for 29 percent of the installed capacity and 22 percent of the gross power generation.

“It’s a challenge, but I think we’re up to the challenge as First Gen (continues) to support the initiatives of the government,” the First Gen official said.

The company, through RE unit Energy Development Corp., is investing around P29.3 billion to develop and commercialize four geothermal and three battery energy storage system projects by the end of this year.