DOE Pushes Pumped Hydro as Key to Energy Security

The Department of Energy (DOE) is ramping up its push for pumped storage hydroelectric power as a cornerstone of the Philippines’ long-term energy strategy, highlighting the successful privatization of the Caliraya-Botocan-Kalayaan (CBK) plant as a model for future investments.

In a media briefing Wednesday, DOE Undersecretary Alessandro O. Sales said the recent CBK privatization “exceeded expectations,” crediting a revised regulatory framework that gave pumped storage facilities distinct treatment under energy asset privatization policies.

“In fact, the bid was over our expectation,” Sales said. “That’s what made it good.”

The CBK complex, located in Laguna, includes a critical pumped storage facility that uses off-peak electricity to pump water to an elevated reservoir, allowing it to generate electricity during peak demand hours.

The DOE said this form of energy storage will play a pivotal role in stabilizing power supply as the country transitions toward more variable renewable sources like solar and wind.

“It’s good that it’s been taken over and privatized already,” Sales added. “Because it can also be useful for nuclear power—as a form of safeguard.”

Sales explained that pumped hydro facilities like CBK can support nuclear power generation by absorbing excess output and balancing grid loads during low-demand periods or when renewable generation dips.

The department is currently integrating pumped storage capacity projections into its 10-year energy outlook, which supports the larger Philippine Energy Plan aimed at achieving a resilient, secure, and low-carbon energy future.

“As renewable energy expands, we need storage at a certain percentage,” Sales noted, underscoring the importance of energy flexibility.

Several pumped hydro projects are already in the pipeline, with some expected to begin operations between 2028 and 2030, in time to support the government’s push for clean energy, while also complementing gas, coal, and potential nuclear power sources.

Privatization of the CBK plant, now under the stewardship of new private investors, marks a shift in government strategy to unlock more value from existing energy infrastructure by tailoring incentives and legal treatment for specialized assets like pumped storage.

The move reflects growing global interest in grid-scale energy storage, especially as countries prepare for more extreme weather conditions and fluctuating supply from renewables.

Energy analysts say pumped storage will help mitigate blackouts, improve frequency regulation, and reduce dependence on imported fuel by enabling more efficient use of existing generation capacity.

Currently, CBK is one of only a few large-scale pumped hydro assets in Southeast Asia, positioning the Philippines as a potential regional leader in this critical technology.

The DOE’s strategy aligns with broader national goals of diversifying the energy mix while maintaining affordability and reliability, especially as the Philippines prepares to integrate nuclear power and accelerate its renewable energy targets.

Sales reaffirmed that pumped storage, while complex and capital-intensive, is “a necessary backbone” for the country’s evolving grid, enabling the flexibility required to meet growing demand and ensure energy sovereignty.