LOPEZ-LED First Gen Corp. expects its investments in hydropower projects owned by Razon-led Prime Infrastructure Capital, Inc. to contribute P16 billion annually starting in 2031, potentially becoming the biggest earnings contributor across its portfolio.
First Gen President and Chief Operating Officer Francis Giles B. Puno said the corporate is making a long-term investment in pumped-storage hydropower assets, which he said are expected to turn out to be “probably the most critical segments of the long run energy system.”
“As renewables proceed to scale, considered one of the central challenges facing power systems is not any longer simply generation, but operational flexibility — the power to store energy when supply is abundant, and deliver it when the system needs it most,” he said at the corporate’s annual stockholders’ meeting on Thursday.
First Gen invested P62 billion for a 33% stake in Prime Infra’s 2,000-megawatt (MW) pumped-storage hydropower portfolio.
Mr. Puno said the facilities are projected to make a big contribution to the corporate’s earnings through a 20-year contracted agreement under the federal government’s green energy auction program.
The projects are expected to generate 3 times the historical average contribution from the 60% stake in natural gas assets sold to Prime Infra, based on performance from 2018 to 2024, he said.
“While these projects require significant upfront capital and a number of other years for construction before meaningful money flow generation, the long-term economics remain compelling,” Mr. Puno said.
As of end-2025, First Gen had an installed renewable energy capability of 1,764.2 MW from hydro, geothermal, solar, and wind facilities nationwide.
The corporate operates the Pantabangan-Masiway complex and the Casecnan hydroelectric facility in Nueva Ecija. The facilities generated 1,074.8 gigawatt-hours last yr, greater than double the output recorded in 2024.
First Gen can also be preparing for the event of the 120-MW Aya Pumped Storage Project adjoining to the Pantabangan facility.
Individually, First Gen Chief Executive Officer Federico “Piki” R. Lopez said he hopes for “an amicable, fair, and lasting resolution of the rift” involving the Lopez family.
“I remain fully prepared for any consequence that may follow this peace overture and I’ll proceed to meet my fiduciary duties to all shareholders in the businesses of the Lopez Group,” Mr. Lopez said.
His statement got here after the bulk bloc of Lopez family holding company Lopez, Inc. withdrew a Feb. 27 board resolution removing Mr. Lopez as president and chief executive officer.
The Lopez majority earlier removed Mr. Lopez from the corporate, citing lack of trust and confidence over the P125-billion hydropower and gas deals, which they alleged were entered into without their knowledge.
Mr. Puno told shareholders that the hydropower deal received “unanimous approval following several questions, clarifications, deliberations, and evaluation amongst the administrators.”
Shares in First Gen fell 2.38% to P15.60 each on Thursday. — Sheldeen Joy Talavera