DOE: P5 trilllion needed to harness 25 GW of hydropower capacity

KALAYAAN, Laguna, Philippines — The Philippines needs roughly P5 trillion in investments to fully harness its vast hydropower potential, according to the Department of Energy (DOE).

Ariel Fronda, chief of the DOE’s Hydropower & Ocean Management Division, told reporters yesterday that the country is sitting on around 25 gigawatts of untapped hydro resources.

Unlocking each megawatt (MW) of capacity is estimated to cost around P200 million, he noted.

“The Philippines stands at an important point in its energy transition. Our renewable energy ambitions are clear. Our need for reliable and affordable electricity remains urgent,” Fronda said.

He particularly highlighted pumped-storage hydro (PSH) facilities, which function like giant rechargeable batteries. They use electricity to pump water into storage during periods of low demand, then release it to generate power when demand rises.

The municipality of Kalayaan is home to a 734.36-MW facility, the country’s first and only PSH plant and the first of its kind in Southeast Asia.

The facility is a key component of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric complex, which is now owned by the Aboitiz-led Thunder Consortium.

“As the country’s established operating pumped-storage facility, Kalayaan provides a practical example of how this technology can support the power system through peaking capacity, energy storage and ancillary services,” Fronda said.

The Kalayaan plant can ramp up to deliver power within just 10 minutes, helping meet the grid’s needs when electricity demand surges.

Aside from the Kalayaan unit, CBK also includes the 39.3-MW Caliraya plant in Lumban and the 22.96-MW Botocan run-of-river facility.

The Caliraya plant consists of two generating units that draw water from the upstream Caliraya reservoir, while the Botocan facility is the country’s oldest hydro plant.

The Thunder Consortium, comprising Aboitiz Renewables Inc., Sumitomo Corp. and Electric Power Development Co. Ltd., bagged CBK for around P36.3 billion.

Aboitiz Group president and CEO Sabin Aboitiz has vowed to continue investing in CBK to improve its operations and maximize its potential.