Lopez-led First Gen Corp. (FGEN) will acquire a 40 percent stake in the pumped storage hydropower (PSH) portfolio of Prime Infrastructure Capital Inc., owned by the group of Enrique K. Razon Jr., in a deal valued at P75 billion.
In a statement on Friday, FGEN said the transaction, which is subject to regulatory approvals, covers Prime Infra’s 600-megawatt (MW) Wawa PSH project in Rizal and the 1,400-MW Ahunan (Pakil) PSH project in Laguna.
Of the total investment, around P62.5 billion will be allocated for direct construction funding and equity requirements.
FGEN’s hydro portfolio strengthened
FGEN president and chief operating officer Giles Puno said the acquisition will strengthen the company’s existing hydro portfolio, which includes the 132MW Pantabangan-Masiway and 165MW Casecnan hydroelectric 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,” Puno said.
Construction is ongoing, with major civil and underground works progressing at Wawa PSH and early-stage development underway at Pakil PSH.
Power China is the engineering, procurement and construction (EPC) contractor for the projects. Toshiba and Andritz Hydro are supplying the electromechanical components for Wawa and Pakil, respectively.
Flexible, dispatchable power
Once operational, the facilities are expected to deliver flexible and dispatchable power to support the country’s expanding renewable energy capacity.
Upon completion, the two projects will add 2,000MW of long-duration energy storage capacity to the Luzon grid, supporting system reliability, large-scale renewable energy integration, and grid balancing.
Energy Projects of National Significance
Both projects have been certified as Energy Projects of National Significance and have secured capacities under the Department of Energy’s green energy auction program.
“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, President and CEO of Prime Infra.