First Gen Corporation is ramping up its capital expenditure to PHP 41.7 billion this year, marking a 22–25% increase from 2025, as it pushes forward with pumped storage hydropower projects and geothermal development across the Philippines and Indonesia.

The investment plan was detailed by Francis Giles B. Puno, President and Chief Operating Officer of First Gen, who said the bulk of spending will go toward hydro assets, while geothermal and solar projects remain a key focus.

A centerpiece of the capex program is a 2,000-megawatt (MW) pumped storage portfolio being developed with Prime Infrastructure Capital, Inc., with completion targeted between 2029 and 2030. First Gen holds a 40% stake, equivalent to roughly 800 MW net capacity, alongside a 100-MW separate pumped storage project. Puno described the portfolio as “a very exciting prospect for hydro in the Philippines.”

He stressed that the company’s plans are market-driven. “We’re reviewing our plans because, at the same time, the market has also not grown. So, we’re also adjusting based on the market needs. But, certainly, whenever there’s geothermal potential, we want to pursue that,” Puno told reporters on March 5.

Geothermal expansion is being led by First Gen’s subsidiary, Energy Development Corporation (EDC), with new wells planned to maintain and boost output in existing fields, including Leyte, where the company aims to restore capacity to around 100 MW. First Gen said it is also preparing to drill its first well for a prospective geothermal project in West Java, Indonesia.  

EDC’s Indonesian push will be pursued through a joint venture with PT DSSR Daya Mas Sakti, covering six sites across West Java, Flores, Jambi, West Sumatra, and Central Sulawesi, with an estimated combined potential of 440 MW. 

“For now, we’re at the early stages. We’re looking at around USD 30 million for the exploration and initial drilling,” Jerome Cainglet, EDC President and COO, said.

The company is also expanding its solar footprint with a 50-MW project in Batangas, which Puno described as First Gen’s “first major solar facility” in the province, rounding off its renewable portfolio across hydro, geothermal, and solar.

Altogether, First Gen aims to grow its total power portfolio to 13 gigawatts (GW) by 2030, reinforcing the Philippines’ target of a 35% renewable energy share in the power mix.  

What impact do you think First Gen’s pumped storage and geothermal push will have on the Philippines’ energy security and renewable transition? Join the discussion.

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