The National Irrigation Administration (NIA) and the First Gen group (First Gen) signed on Tuesday, 30 June 2026, a Memorandum of Agreement (MOA) for the development of the Aya Pumped-Storage Project (Aya PSP) in Pantabangan, Nueva Ecija. The MOA between the two parties marks a milestone in proceeding with the actual development of the 120-megawatt (MW) pumped-storage project.
The MOA authorizes First Gen to develop, construct, operate, and maintain the Aya PSP. It also gives First Gen the clearance and endorsement to secure all other permits needed by the project. The MOA is valid for 25 years and is renewable for another 25 years.
“More facilities with storage and highly flexible operating parameters are key to stabilize the electricity grid, in terms of addressing load variation and shifting energy supply to support evening peak demand. Project Aya will provide more resources for NIA to effectively manage valuable water resources,” said Dennis Michael Gonzales, First Gen Senior Vice-President.
“We reaffirm our shared commitment to advancing sustainable development, strengthening energy security, and maximizing the benefits of our water resources for future generations through the development of the Aya Pumped-Storage Project.” NIA Administrator Guillen added.
A pumped-storage hydroelectric power plant cycles water between upper and lower reservoirs to store and generate electricity without water abstraction or loss.
Aya PSP will utilize the Aya and Masiway Reservoirs to cycle and store water to generate energy.
To store energy, the project pumps water from the lower reservoir to the upper reservoir, then provides energy or ancillary services to the grid by releasing water back to the lower reservoir to drive an underground power plant.
A flagship project of First Gen, Aya PSP aims to maximize the utilization of two other First Gen-owned hydro power facilities within the same area—the 132-MW Pantabangan-Masiway plant and the 165-MW Casecnan plant. It is targeted for commercial operation by 2030.
This significant partnership aligns with the Marcos Administration’s Bagong Pilipinas framework in contributing to the country’s energy security and climate resilience initiatives by modernizing the power grid, expanding renewable energy, and leveraging public water infrastructure.
The project is also anchored on NIA Administrator Guillen’s 7-Point Strategic Policy Agenda, particularly in Irrigation Infrastructure Development. This highlights NIA’s continuing efforts to modernize irrigation systems and expand service coverage nationwide.
