First Gen Corp said it will acquire a 40% equity interest in Prime Infrastructure Capital Inc.’s pumped-storage hydropower portfolio for 75 billion pesos ($1.3 billion), deepening a strategic partnership aimed at building large-scale energy storage capacity to support the Philippines’ transition to renewable power.
The transaction, which is subject to regulatory approval, covers two projects with a combined capacity of 2,000 megawatts (MW): the 600-MW Wawa pumped-storage hydropower project in Rizal province and the 1,400-MW Ahunan project in Laguna.
The facilities are designed to provide long-duration energy storage, helping stabilize the Luzon grid and enable greater integration of intermittent renewable energy such as solar and wind.
First Gen said 62.5 billion pesos of the investment will be used to directly fund construction and meet the equity requirements of the projects.
Both developments have been designated by the government as Energy Projects of National Significance and were awarded capacity under the Department of Energy’s green energy auction programme.
Prime Infra said major civil and underground works for the Wawa project are already under way, while early-stage construction has begun for the Ahunan facility.
PowerChina is serving as the engineering, procurement and construction contractor for both projects. Toshiba will supply the electromechanical systems for Wawa, while Andritz Hydro will provide the equipment for the Laguna development.
Pumped-storage hydropower works like a large-scale battery, storing excess electricity by pumping water to an upper reservoir and releasing it to generate power during peak demand.
Once completed, the projects are expected to deliver flexible and dispatchable capacity by December 2030, improving grid reliability and supporting the country’s growing renewable energy pipeline.
For First Gen, the investment expands its partnership with Prime Infra and strengthens its shift toward cleaner energy.
The new facilities will complement its existing hydroelectric assets, including the Pantabangan-Masiway and Casecnan plants, and enhance its portfolio of renewable and low-carbon generation.
The deal also follows Prime Infra’s recent acquisition of a controlling stake in First Gen’s gas-fired power business, further aligning the two companies’ long-term infrastructure and energy strategies as the Philippines seeks to enhance energy security and reduce reliance on imported fuels.
Business News Asia
