First Gen and Prime Infra form strategic partnership to deliver PHP 75 billion pumped storage hydropower portfolio

First Gen Corporation (First Gen) and Prime Infrastructure Capital Inc. (Prime Infra) have reached a landmark agreement to accelerate the development of critical energy storage in the Philippines. First Gen will acquire a 40% equity interest in Prime Infra’s pumped storage hydropower (PSH) portfolio for a transaction value of PHP 75 billion.

The partnership centers on two flagship projects: the 600MW Wawa PSH project in Rizal and the 1,400MW Ahunan (Pakil) PSH project in Laguna. Together, these facilities will provide 2,000MW of long-duration energy storage, a vital component for the Luzon grid’s transition to renewable energy.

Of the total transaction value, PHP 62.5 billion is earmarked to directly fund construction and equity requirements. Both projects have been designated as Energy Projects of National Significance and have secured notices of award from the Department of Energy’s green energy auction.

The PSH technology acts as a giant “water battery,” using excess electricity to pump water to an upper reservoir and releasing it through turbines to generate power when demand is high or renewable supply is low.

Guillaume Lucci, President and CEO of Prime Infra, highlighted the necessity of local collaboration for these multi-year developments: “These are highly complex infrastructure developments that require deep technical expertise and disciplined execution. We are pleased to be working hand in hand with First Gen, a trusted partner with a strong track record, to execute these projects safely and on schedule.”

Giles Puno, President and COO of First Gen, emphasized the strategic alignment with the company’s decarbonization goals: “Our investment in these projects crystallizes our portfolio’s shift to renewable energy. Alongside our existing hydroelectric assets, Wawa and Pakil will provide the grid stability needed for the seamless integration of more renewable energy into the Philippine power system.”

Construction is currently progressing across the portfolio. Major civil and underground works are underway at the Wawa site, while early-stage construction has commenced at Pakil.