LOPEZ-LED power producer First Gen Corp. has put aside P41.7 billion in capital expenditure (capex) this yr because it advances a proposed investment in a 2,000-megawatt (MW) pumped storage hydropower portfolio.
The capex allocation is higher than last yr’s P33.5 billion.
Talking to reporters last week, First Gen President and Chief Operating Officer Francis Giles B. Puno described the planned investment as “a really exciting prospect for hydro within the Philippines.”
The corporate is ready to amass a 40% equity interest in Prime Infrastructure Capital, Inc.’s (Prime Infra) pumped storage hydropower portfolio for P75 billion.
The transaction covers Prime Infra’s 600-MW Wawa pumped storage hydropower project in Rizal province and the 1,400-MW Ahunan project in Laguna.
These facilities will complement First Gen’s existing 132-MW Pantabangan-Masiway and 165-MW Casecnan hydroelectric power plants, providing grid stability and reliability.
The corporate can be developing the 100-MW Aya pumped storage project in Nueva Ecija.
The projects form a part of First Gen’s broader expansion strategy, which goals to grow its energy portfolio to 13 gigawatts (GW) by 2030. The corporate previously estimated around $20 million in required investment to realize this goal.
Mr. Puno said the corporate is reviewing its plans amid soft market conditions.
“We’re reviewing our plans because, at the identical time, the market has also not grown, it’s not like you’ll be able to construct. So, we’re also adjusting based available on the market needs. But, definitely, at any time when there’s geothermal potential, we would like to pursue that,” he said.
First Gen currently has a complete installed capability of over 3,700 MW across natural gas, geothermal, hydropower, wind, and solar technologies.
The corporate has yet to reveal its full-year 2025 income results but reported regular earnings for the nine-month period.
For January to September, First Gen’s attributable net income rose 4% to $215.4 million, as higher contributions from its hydropower portfolio offset declines in natural gas and geothermal earnings. — Sheldeen Joy Talavera