^{Photo credit: SMEC}

Lopez-led First Gen Corporation has announced that it is acquiring a 40% stake in Prime Infrastructure Capital Inc.’s pumped storage hydropower (PSH) portfolio in a PHP 75-billion deal, as part of a broader strategic pivot following its divestment of majority control in its Batangas natural gas assets.

The transaction, pending regulatory approval, covers the 600 megawatt (MW) Wawa PSH project in Rizal and the 1,400 MW Ahunan (Pakil) PSH project in Laguna, which provide a combined 2,000 MW of long-duration energy storage designed to improve grid reliability and support renewable energy integration across Luzon. 

Both projects have been certified as Energy Projects of National Significance by the Department of Energy and were awarded capacity contracts under the agency’s green energy auction program.

Construction is currently underway at both sites, with major civil and underground works progressing at Wawa and early-stage construction begun at Pakil. Power China serves as the engineering, procurement, and construction (EPC) contractor for both projects, while Toshiba and Andritz Hydro provide the electromechanical components for Wawa and Pakil, respectively.

“These are highly complex, multi-year infrastructure developments that require deep technical expertise, disciplined execution, and strong alignment with national energy priorities,” said Guillaume Lucci, Prime Infra President and CEO. “We are pleased to be working hand in hand with First Gen, a trusted partner with a strong track record in power generation, to help execute these critical energy projects safely, efficiently and on schedule.”

Giles Puno, First Gen President and Chief Operating Officer, said the investment will expand the company’s renewable footprint and provide grid stability. He noted the pumped storage facilities “provide grid stability and reliability, allowing for the seamless integration of renewable energy projects into the power system.” The projects will complement First Gen’s existing hydro portfolio, including the 132 MW Pantabangan-Masiway and 165 MW Casecnan plants.

The pumped storage partnership comes after Prime Infra’s acquisition of a 60% controlling stake in First Gen’s Batangas gas assets in November 2025 for PH P50 billion. The deal covered the 1,000 MW Santa Rita, 500 MW San Lorenzo, 450 MW San Gabriel, and 97 MW Avion plants, as well as the proposed 1,200 MW Santa Maria plant and an offshore LNG terminal, with First Gen retaining 40%. The deal represents a strategic shift by First Gen toward renewable energy while securing Prime Infra’s presence across the natural gas value chain.

How will these moves affect Luzon’s renewable energy integration, grid stability, and investment landscape in the power sector?

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