Prime Infra-First Gen Partnership Advances 2,000-MW Renewable Integration Plan
- February 20, 2026
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First Gen Corp. has agreed to acquire a 40-percent stake in Prime Infrastructure Capital Inc.’s pumped storage hydropower (PSH) portfolio for ₱75 billion, expanding the strategic partnership between the Lopez and Razon-led groups and adding 2,000 megawatts (MW) of energy storage capacity to the Luzon grid.
The transaction, subject to regulatory approval, covers the 600-MW Wawa PSH project in Rizal and the 1,400-MW Ahunan PSH project in Laguna. Both developments have been designated by the government as “Energy Projects of National Significance” and were issued notices of award under the Department of Energy’s green energy auction program.
Complex Infrastructure
In a disclosure, First Gen said ₱62.5 billion of the total transaction value would be allocated directly to fund construction and meet the equity requirements of the projects. The facilities are targeted to be completed by 2030 and are expected to deliver 2,000 MW of energy storage capacity to help stabilize the Luzon grid as more renewable energy sources come online.
Prime Infra President and CEO Guillaume Lucci described the projects as “highly complex, multi-year infrastructure developments that require deep technical expertise.” He said partnering with First Gen, which has an established track record in power generation, would help ensure the projects are executed “safely, efficiently and on schedule.”
Major civil and underground works are ongoing at the Wawa site, while early-stage construction has begun for the Ahunan project, also referred to as the Pakil facility in Laguna. Power China serves as the engineering, procurement and construction contractor for both projects. Toshiba will supply electromechanical components for Wawa, while Andritz Hydro will provide similar systems for Ahunan.
Grid Stability And Renewable Integration
Pumped storage hydropower facilities function like large-scale batteries, moving water between reservoirs at different elevations to store and release electricity as needed. Unlike traditional hydropower dams, PSH plants are designed to provide flexible and dispatchable power, helping balance fluctuations from intermittent renewable sources such as solar and wind.
First Gen President and Chief Operating Officer Giles Puno said the Wawa and Ahunan projects would complement the company’s existing hydro portfolio, which includes the 132-MW Pantabangan-Masiway and 165-MW Casecnan plants. “The Wawa and Pakil plants will complement our portfolio, as pumped storage hydropower facilities provide grid stability and reliability,” Puno said, adding that the investment aligns with the company’s mission to pursue a “decarbonized and regenerative future.”
The projects are also seen as supporting national objectives to strengthen energy security, reduce dependence on imported fossil fuels, and advance a more resilient power system.
Razon-Lopez Energy Alliance
The deal further broadens ties between Enrique Razon Jr.’s Prime Infra and the Lopez family’s First Gen. In May last year, Prime Infra agreed to acquire a 60-percent stake in First Gen’s gas-fired power plant assets for ₱50 billion. That transaction gave Prime Infra a controlling interest in four operating gas plants and a planned fifth facility with a combined capacity of 3,247 MW, along with an offshore liquefied natural gas terminal.
The gas plant acquisition provides potential offtake for the Malampaya gas field, in which Prime Infra holds a 45-percent stake. The company and its partners are investing $893 million to drill additional wells in the offshore field.
With the latest hydropower transaction, both groups are expanding collaboration across gas and renewable energy assets, positioning pumped storage as a key component in integrating more renewable capacity into the country’s power system.
Source:
https://business.inquirer.net/574018/first-gen-buys-40-of-prime-infra-hydro-assets-for-p75b
