SN Aboitiz keen on CBK hydro plants

RENEWABLE ENERGY company SN Aboitiz Power Group (SNAP) has expressed interest in the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power project in Laguna.

“CBK is interesting, right? Because energy storage is a very important part of the portfolio especially when we realize our aspirations for the renewable energy portfolio standard,” SNAP President and Chief Executive Officer Joseph S. Yu told reporters in a recent interview.

The Power Sector Assets and Liabilities Management Corp. (PSALM) held an investors forum on Dec. 1 to generate interest in the privatization of the CBK hydroelectric power plants, as well as the rehabilitation and asset management plan for the Agus-Pulangi hydroelectric power plants with a private partner.

The public bidding and contract turnover to the winning bidder of the CBK project is set to be held in the second semester of 2024.

“It’s a very interesting project, so yes it’s very interesting for us kasi (because) it will require a fair bit of creativity and it will be a fun exercise,” Mr. Yu said.

SNAP is a joint venture between Aboitiz Power Corp. and Norwegian company Scatec. It owns and operates the 112.5-MW Ambuklao and 140-MW Binga hydroelectric power plants in Benguet; the 388-MW Magat hydroelectric power plant on the border of Isabela and Ifugao; and the 8.5MW Maris hydroelectric power plant in Isabela.

The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer scheme run by independent power producer CBK Power Co. Ltd. — a 50:50 partnership between Electric Power Development Co., Ltd. (J-Power) and Sumitomo Corp. of Japan — which will expire in 2026.

These facilities are composed of the 39.37-MW Caliraya in Lumban; 22.91-MW Botocan in Majayjay; and 366-MW Kalayaan I and 368.36-MW Kalayaan II in Laguna.

In October, the Asian Development Bank was awarded a contract as the transaction advisor to help PSALM monetize the CBK hydroelectric power plant complex.

Its advisory services, through its Office of Markets Development and Public-Private Partnerships, will support the transfer of the facilities to the private sector “at an optimal value for the government.”

This is also while ensuring that the government’s objectives of energy security and grid stability are met.