THE PHILIPPINES will need about P5 trillion worth of investment to harness its estimated 25-gigawatt (GW) hydropower potential, according to the Department of Energy (DoE).
On the sidelines of the AboitizPower 101 workshop on Thursday, Ariel D. Fronda, head of the DoE’s Hydropower & Ocean Energy Management Division, told reporters that the per-megawatt (MW) cost of hydropower is about P200 million.
The need to maximize hydropower is highlighted by the energy insecurity faced by the Philippines stemming from its vulnerability to geopolitical risks, he said.
“We are expanding our renewable energy portfolio responding to growing electricity demand, and strengthening energy security in an environment shaped by fuel price volatility, climate risks, and the changing operating requirements of our power system,” he said.
“These developments require us not only to build more generating facilities, but also to develop the flexibility, storage, and supporting infrastructure that will allow the entire power system to operate reliably,” he added.
Hydropower plants generate electricity by using flowing or falling water to turn turbines connected to generators. They come in different types, including run-of-river systems, impounding hydro, and pumped storage hydropower.
At the end of 2025, hydropower accounted for about 12% of the Philippines’ installed power generation capacity, according to the DoE.
Mr. Fronda said some hydropower projects are expected to begin delivering electricity by 2028 following the third round of the green energy auction (GEA-3) last year.
GEA-3, which covers renewable energy technologies that are not eligible for feed-in-tariff incentives, attracted over 6,600 MW of subscribed capacity.
The Philippines is bracing for a strong El Niño that began this year and is projected to persist through the first half of 2027, threatening to tighten power supply as extreme heat drives up electricity demand and dry conditions weigh on generation.
Since hydropower facilities depend on reservoir and river levels, a reduction could prompt plants to run at partial capacity and reduce power generation output.
The DoE has warned that warmer temperatures could reduce hydropower generation by up to 40%.
Mr. Fronda said pumped-storage hydropower could help offset reduced generation from conventional hydropower plants, such as run-of-river and impounding facilities, during El Niño.
“It can help bridge the gap and lessen the decline in output from these conventional hydropower plants,” he said.
Pumped-storage hydropower works by using electricity to pump water from a lower reservoir to an upper reservoir when energy is available. When electricity is needed, the stored water is released through turbines to generate power. — Sheldeen Joy Talavera