The National Irrigation Administration (NIA) has approved the development of the 120-megawatt Aya Pumped-Storage Project (Aya PSP) by First Gen Corp. to help strengthen the country’s electricity supply and energy security.

The 120-MW Aya PSP will be constructed in Pantabangan, Nueva Ecija. First Gen said the planned pumped-storage hydroelectric power plant will “cycle water between upper and lower reservoirs to store and generate electricity without water abstraction or loss.”

The company announced on Monday that First Gen and NIA had signed a memorandum of agreement (MOA) allowing the power producer to develop, construct, operate, and maintain the Aya PSP for an initial period of 25 years, renewable for another 25 years.

Under the project, the Aya and Masiway reservoirs will be utilized to cycle and store water for power generation.

First Gen said the Aya PSP aims to maximize the utilization of two other hydroelectric facilities it owns in the area—the 132-MW Pantabangan-Masiway Hydroelectric Power Plant and the 165-MW Casecnan Hydroelectric Power Plant. The project is targeted for commercial operation by 2030.

“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 Eduardo Guillen said.

First Gen Senior Vice President Dennis Michael Gonzales said more facilities with energy storage and highly flexible operating parameters are needed to stabilize the power grid.

“More facilities with storage and highly flexible operating parameters are key to stabilizing the electricity grid, in terms of addressing load variation and shifting energy supply to support evening peak demand,” Gonzales said.

He added that “Project Aya will provide more resources for NIA to effectively manage valuable water resources.”