Hydropower developers in the Philippines are asking the government to help accelerate project construction during the approaching El Niño, arguing that lower water levels — while a challenge for plant operations — create favorable conditions to advance construction, even as the weather phenomenon threatens to reduce electricity generation.

PhilHydro Association, Inc., which represents hydropower developers, owners, operators, and technology providers in the country — including Aboitiz Power Corp. and First Gen Corp. — said its president, Francis Joel Arrieta Sayre, has asked the Department of Energy (DoE) to help developers "maximize the forthcoming El Niño for hydro developers to fast-track development."

"While the water levels are low which does not bode well for operating hydro plants, it will be easier for hydro construction," Mr. Sayre said in a statement on Sunday.

The Philippines is preparing for an El Niño episode projected to persist through the first half of 2027. Higher temperatures are expected to increase power demand, while dry conditions could curb hydropower output, since plants depend on water levels in reservoirs and rivers and reduced water availability can limit generation capacity.

Hydropower accounted for about 12% of the country's total installed power generation capacity as of December 2025, according to DoE data. The department has previously warned that warmer temperatures could reduce hydropower generation by as much as 40%. Those two data points frame the stakes: any weather-driven decline in hydro output would coincide with a period when demand is expected to climb.

"We are at the crossfire of wars, oil crisis, and political conflict affecting almost every industry globally, and hydro being one of the hardest hit with unfinished projects due to highly inflated costs," Mr. Sayre said.

The association also expressed support for the DoE's planned seventh round of the Green Energy Auction (GEA) program — the government's mechanism for awarding renewable energy capacity to developers — which will include run-of-river hydropower projects. The department has set an installation target of 175 megawatts (MW) for run-of-river hydropower projects in Mindanao, with delivery scheduled between 2028 and 2031.

Previous auction rounds covered run-of-river hydropower under GEA-1 and pumped-storage hydropower under GEA-3. Projects awarded under these rounds remain under development, with some nearing completion, according to the association.

Mr. Sayre also asked the government to conduct similar auctions in Luzon and the Visayas next year, followed by separate auctions for pumped-storage hydropower and impounding-dam baseload hydropower within the next two years. The three technologies differ in how they use water: run-of-river plants generate from a river's natural flow, pumped-storage facilities move water between reservoirs to store and release energy, and impounding-dam baseload plants draw on reservoirs for steady output.

He further called for a medium- to long-term hydropower development roadmap aligned with the Philippine Energy Plan 2023-2050 to help developers plan new projects and expansions based on potential electricity offtake opportunities.

"Hydro can help bring to realization the government's target of 35% renewable energy share by 2030 and 50% by 2050, but we need support," Mr. Sayre said.

The DoE's response to these requests, alongside the conduct of the seventh GEA round and its 175-MW run-of-river target for Mindanao, is the immediate development to watch as the El Niño window approaches.

— Sheldeen Joy Talavera

Source: BusinessWorld