First Gen Corp. (FGEN) expects its pumped-storage hydro projects to contribute around P16 billion in annual earnings beginning 2031, as the Lopez-led energy company ramps up investments in renewable energy and long-duration storage.

At the company’s annual stockholders’ meeting on Thursday, FGEN president and COO Francis Giles Puno said the company has committed about P62 billion to develop around 2,000 megawatts  of pumped-storage hydro capacity through projects such as Wawa and Pakil, in partnership with Prime Infrastructure.

“Beginning in 2031, these facilities are projected to contribute approximately P16 billion annually to First Gen’s bottom line,” Puno said, referring to the projects’ 20-year contracted agreements under the Department of Energy’s Green Energy Auction Program.

He added that the projected earnings contribution is “about three times the historical average contribution” of the company’s former 60-percent stake in its natural gas business.

Puno described the expansion as “one of the largest strategic investments in FGEN’s history.”