Information on the target
Synergy Consulting, Inc. is proud to serve as the Financial and Valuation Advisor to the Asian Development Bank (ADB) and the Power Sector Asset and Liabilities Management Corporation (PSALM) for the privatization of the 796.5 MW CBKHEPP Complex. The successful transfer of rights to Cleanergy 9 Power Inc. in February 2026 marks a significant milestone in the sale of this power plant. Synergy Consulting Inc. played a pivotal role as the Lead Financial and Valuation Advisor, supporting ADB and PSALM throughout the transaction process.
This transaction culminated after the Thunder Consortium, which includes Aboitiz Power Renewables Inc., Sumitomo Corporation, and J-POWER, was declared the winning bidder on July 4, 2025, with a bid amounting to PHP 36.266 billion. The signing of project documents on August 14, 2025, led to the commercial close, with the project successfully closing on December 19, 2025. This initiative represents the first privatization of a portfolio of hydropower assets in the Philippines, aligning with the strategic privatization roadmap of the Republic of the Philippines.
Industry overview in the target’s specific country
The power sector in the Philippines is undergoing a significant transformation, shifting from a focus on capacity expansion to enhancing system flexibility. This evolution is driven by the increasing integration of renewable energy sources into the grid, which has introduced new challenges, particularly in balancing supply and demand. Since July 2025, the rising costs associated with ancillary services have begun to materially impact tariffs, indicating the growing complexity of managing a renewables-heavy grid.
By late 2025, the operational Reserve Market had already made a notable impact on reliability, resulting in a significant reduction in system alerts. This momentum is expected to continue into 2026, with a policy focus on developing energy storage frameworks and advancements in wholesale market pricing and renewable capacity additions occurring in early 2026. The clear direction of the market emphasizes the importance of flexibility, dispatchability, and grid responsiveness as key metrics of asset value.
In this evolving market landscape, where energy, reserves, and potential capacity are increasingly co-optimized, assets such as pumped storage are uniquely positioned to capture multi-layered value. This includes opportunities for energy arbitrage, ancillary services, and overall system support. The transition towards a more flexible and resilient power system is not just a necessity but a strategic imperative for the Philippines as it advances its energy transition agenda.
The rationale behind the deal The privatization of the CBKHEPP Complex is not merely a transaction; it represents a strategic repositioning of critical infrastructure within the context of a flexibility-constrained, high-renewables power system. This initiative aligns with the Phili…