First Gen to take 40% stake in Prime Infra’s 2GW pumped storage portfolio

First Gen Corporation has agreed to acquire a 40% equity interest in Prime Infrastructure Capital’s pumped storage hydropower (PSH) portfolio in a transaction valued at 75bn pesos (US$1.34bn), marking a significant expansion of its role in long-duration energy storage in the Philippines.

Of the total consideration, 62.5bn pesos will be allocated directly to construction and equity requirements for the projects. The transaction remains subject to regulatory approval.

The agreement covers two developments on the island of Luzon: the 600MW Wawa pumped storage project in Rizal province and the 1.4GW Ahunan (Pakil) pumped storage project in Laguna. Combined, the facilities will provide 2000MW of long-duration energy storage capacity intended to support grid balancing, system reliability and renewable energy integration.

Both projects have been certified by the Philippine Government as Energy Projects of National Significance and have received notices of award for their respective capacities under the Department of Energy’s green energy auction programme.

Prime Infra president and CEO Guillaume Lucci said the partnership reflects the technical and execution demands of the projects.

“These are highly complex, multi-year infrastructure developments that require deep technical expertise, disciplined execution and strong alignment with national energy priorities,” he said. “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.”

First Gen president and chief operating officer Giles Puno said the transaction strengthens the company’s renewable energy portfolio.

“Our investment in the 2,000MW [2GW] Wawa and Pakil Pumped Storage Hydropower Projects expands our partnership with Prime Infra and embodies First Gen’s mission to forge collaborative pathways for a decarbonised and regenerative future, crystallizing our portfolio’s shift to renewable energy. Together with our existing 132MW Pantabangan-Masiway and 165MW Casecnan hydroelectric power plants, the Wawa and Pakil plants will complement our portfolio, as pumped storage hydropower facilities provide grid stability and reliability, allowing for the seamless integration of renewable energy projects into the power system,” he said.

Construction is under way on both projects. Prime Infra said major civil and underground works are progressing at the Wawa site, while early-stage construction has commenced at the Pakil development.

PowerChina is serving as the engineering, procurement and construction contractor for both schemes, with SMEC acting as owner’s engineer for Wawa. Toshiba will supply electromechanical equipment for the Wawa facility, while Andritz Hydro will provide electromechanical components for the Pakil project.

Prime Infra’s pumped storage portfolio is targeted for completion by December 2030. Once operational, the projects are expected to provide dispatchable capacity to support growing renewable energy penetration in the Luzon grid, while contributing to national energy security objectives and reduced dependence on imported fuels.

The transaction follows Prime Infra’s recent acquisition of a controlling stake in First Gas and further deepens the companies’ strategic relationship in the Philippine power sector.

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