First Gen and the National Irrigation Administration (NIA) have signed an agreement for the development of the 120-megawatt Aya Pumped-Storage Project in Pantabangan, Nueva Ecija.

The memorandum of agreement, signed on June 30, authorizes First Gen to develop, construct, operate, and maintain the Aya pumped-storage hydro facility.

The agreement also gives First Gen the clearance and endorsement to secure other permits needed for the project. It is valid for 25 years and renewable for another 25 years.

Aya PSP will use the Aya and Masiway Reservoirs to cycle and store water for power generation.

A pumped-storage hydro plant works like a water-based energy storage system. It pumps water from a lower reservoir to an upper reservoir when storing energy, then releases the water back down to drive an underground power plant when electricity or grid support is needed.

First Gen said the project can provide energy or ancillary services to the grid. Ancillary services help keep the power system stable by supporting grid functions such as balancing supply and demand.

“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,” First Gen Senior Vice President Dennis Michael Gonzales said.

The project is also expected to support farmland irrigation requirements, linking the power development with NIA’s water management mandate.

“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 Eddie Guillen said.

First Gen described Aya PSP as one of its flagship projects. The facility is intended to maximize the use of the company’s nearby hydro assets, including the 132-MW Pantabangan-Masiway plant and the 165-MW Casecnan plant.

The project is targeted for commercial operation by 2030.

The partnership also aligns with the government’s energy security and climate resilience initiatives by supporting grid modernization, renewable energy expansion, and the use of public water infrastructure.

NIA said the project is anchored on its irrigation infrastructure development agenda, which aims to modernize irrigation systems and expand service coverage nationwide.

Can pumped-storage hydro help the Philippines add the flexible renewable energy capacity needed to support peak demand and grid reliability?

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