First Gen Corporation expects its planned pumped-storage hydro portfolio to contribute approximately PHP 16 billion annually to the company’s bottom line beginning in 2031, highlighting the growing role of energy storage in its long-term growth strategy.

During the company’s 2026 Annual Stockholders’ Meeting, First Gen Vice Chairman, President, and COO Francis Giles B. Puno said the projected earnings would come from pumped-storage hydro projects awarded contracts under the Department of Energy’s Green Energy Auction Program.

“Beginning in 2031, these projects are expected to contribute approximately PHP 16 billion annually to First Gen’s bottom line,” Puno said.

The projects form part of a broader pumped-storage hydro portfolio being developed in partnership with Prime Infrastructure and are expected to provide around 2,000 megawatts (MW) of storage capacity.

To support the development, First Gen has committed approximately PHP 62 billion toward the projects, which include the Wawa and Pakil pumped-storage hydro facilities.

“This represents one of the largest strategic investments in First Gen’s history,” Puno said.

Pumped-storage hydro facilities store electricity by pumping water to an elevated reservoir during periods of lower demand and releasing it through turbines to generate electricity when demand increases.

According to First Gen, the projects are expected to help improve grid flexibility and support the integration of more renewable energy sources such as solar and wind into the power system.

The company said the investment is being largely funded through proceeds from the partial sale of its natural gas business, allowing it to redirect capital toward long-duration energy storage infrastructure.

Puno said the projects reflect First Gen’s strategy of investing in technologies that can support both energy transition goals and power system reliability.

As renewable energy deployment continues to accelerate, the company sees large-scale energy storage becoming increasingly important in balancing fluctuations in supply and demand.

The investment forms part of First Gen’s broader efforts to expand its renewable energy and energy storage portfolio while supporting long-term energy security and grid stability in the Philippines.

As renewable energy deployment accelerates, could energy storage projects become one of the power sector’s most important long-term revenue drivers?

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