Philippines: Flood woes ignite buzz over long-term fix, here's one

'Win-win-win' DOE-NIA merger deal: good irrigation, cheaper power, better flood control

Last updated:
Jay Hilotin, Senior Assistant Editor
3 MIN READ
One of the giant pumped hydropower "penstocks" that feed turbines downstream from Caliraya Lake and empties into the Laguna Lake, near Manila. This plant, energised in 1983, produces 797MW, enough to power 2.8m Filipino homes. Caliraya is located 60 km east-southeast of Manila. It serves as the reservoir for the Kalayaan and Caliraya Power Plants.
One of the giant pumped hydropower "penstocks" that feed turbines downstream from Caliraya Lake and empties into the Laguna Lake, near Manila. This plant, energised in 1983, produces 797MW, enough to power 2.8m Filipino homes. Caliraya is located 60 km east-southeast of Manila. It serves as the reservoir for the Kalayaan and Caliraya Power Plants.
CBK

Manila: While the Philippines grapples with costly ghost or subpar flood control projects (now under intense scrutiny), one promising idea deserves the spotlight.

A stronger collaboration, if not an outright merger, between the Department of Energy (DOE) and the National Irrigation Administration (NIA) could harness the country’s vast hydroelectric potential while solving flooding.

In the light of the country's experience with pumped-storage hydropower, this could help solve the triple whammy of constant flooding, underutilised flood-control, and high cost of electricity.

Let's dive in:

Harnessing nature's blessings

High power rates, among the steepest in the Asean region, alongside inefficiencies of electric cooperatives, ding every Filipino household and business in the country, especially in the rural areas.

It's also one key reason why Philippine manufacturing, even in urban industrial zones, is lagging compared to neighbours.

Electricity represents up to 60% of operating costs for high-energy users like manufacturers, making it a vital and often expensive input. 

In contrast, the Philippines’ rich water resources are staggering.

So far, it's been a constant headache, instead of a blessing, due to flooding, construction mismanagement and the culture of kickbacks involving contractors and lawmakers.

But all hope is not lost.

With 421 identified river systems — excluding countless smaller streams and creeks — plus more than 200 waterfalls, the archipelago offers abundant natural assets vital for freshwater supply, biodiversity, water regulation, and potentially, power generation.

These rivers and waterfalls hold incredible promise for multi-purpose use: irrigation, flood management, and clean energy, according to a Science Direct study (Guiamel & Lee, 2020).

The research was conducted by Ismail Adal Guiamel and Han Soo Lee of the Hiroshima University's Graduate School for International Development and Cooperation. Guiamel also works for the Bangsamoro Development Agency (BDA).

Shining example

A shining example is the 797-MW Caliraya-Botocan-Kalayaan (CBK) pumped hydropower plant near Manila.

Commissioned in 1983, it remains the oldest pumped-storage plant in ASEAN and the only one of its kind in the Philippines.

This facility alone produces enough electricity to power some 2.87 million Filipino households, based on everyday consumption estimates.

Yet, remarkably, no similar projects have been developed since, despite the enormous untapped potential, as per Energy Tracker.

Win-win-win

DOE-NIA integration, — or merger — under a whole-of-nation strategy rubrik, promises a win-win-win scenario: optimised water resource management supporting irrigation, sustainable energy, and flood control simultaneously.

By sharing infrastructure and aligning goals, DOE can use NIA's irrigation facilities for hydropower without disrupting farmers’ water access.

NIA, a government-owned and controlled corporation, is currently under the Office of the President (OP), having been transferred there by Executive Order No. 69 in 2024.

This potential for synergy should be part of a whole-of-nation strategy for energy security and development.

And it could greatly enhance the value derived from water while boosting funding for irrigation maintenance and rural electrification, propelling the country closer to the government's target of generating 35% of its energy from renewables by 2030 — and 50% by 2040.

Utilising the country's mountainous terrain

The Philippines’ mountainous terrain, numerous rivers, and elevation differences make it an ideal location for pumped storage hydropower (PSHP), which acts like a gigantic rechargeable battery.

It pumps water uphill when demand is low and releases it to generate power during peaks, stabilising the grid and reducing reliance on fossil fuel peaker plants.

Planned projects such as the 1,400 MW Pakil and the 600 MW Wawa plants underline growing investor confidence in this technology.

Run-of-river hydropower systems

Another feather in the renewable cap is run-of-river (ROR) hydropower systems, which capture kinetic energy from flowing rivers with minimal environmental disruption, avoiding large reservoirs.

Faster and cheaper to deploy, ROR plants suit the country’s steep rivers well. The 60 MW Amburayan River ROR plant powers over 124,000 homes, generating around 298.7 GWh annually while preserving ecological balance, as per CREC.

The practicality of coordinating water for food and power is urgent: The existing water resources are underutilized in many areas, sometimes causing flooding risks that could be alleviated with integrated projects.

Exciting path forward

Closer DOE-NIA coordination, if not outright merger, would unlock these multiple benefits efficiently, boosting energy security, irrigation infrastructure sustainability, and community resilience.

If planned well and done right, harnessing hydroelectric energy through joint efforts between the DOE and NIA offers an exciting path forward for the Philippines.

With 400+ rivers and about 200 waterfalls brimming with potential, innovative hydropower development can drive the country toward a cleaner, more resilient energy future while supporting vital agricultural and flood control needs.

Computation note: A 797-MW power plant like the CBK produces about 19.1 million kWh per day (797,000 kW × 24 hours).

Given the average Filipino household consumes about 6.67 kWh daily (200 kWh monthly), this capacity can theoretically supply electricity to approximately 2.87 million homes, assuming full operation and average consumption, as per Energy Tracker.

Sign up for the Daily Briefing

Get the latest news and updates straight to your inbox

Up Next