By Sheldeen Joy Talavera, Reporter
A JAPANESE electric utility has acquired a minority stake within the 600-megawatt (MW) Wawa pumped storage hydropower project, joining Razon-led Prime Infrastructure Capital, Inc. and Lopez-led First Gen Corp. in developing the $2.57-billion energy storage facility in Rizal.
In a press release on Thursday, First Gen said Kansai Electric Power Co., Inc. (KANSAI) had entered right into a definitive agreement to accumulate a 14% interest in PMJVCo Holdings, Inc., a subsidiary of Prime Hydropower Energy, Inc. (PHEI).
Following the transaction, PMJVCo shall be 86%-owned by PHEI, which is 33%-owned by FGEN Aqua Power Holdings, Inc., a subsidiary of First Gen.
The transaction will give KANSAI an indirect 12.18% interest in Olympia Violago Water & Power, Inc. (OVWPI), a PMJVCo subsidiary developing the Wawa pumped storage hydropower project.
The project can have a storage capability of 6,000 megawatt-hours (MWh) per day and is predicted to start operations by 2030. It has been certified as an Energy Project of National Significance by the Department of Energy (DoE).
KANSAI is a Japanese electric utility engaged within the generation, transmission, and distribution of electricity, with a portfolio spanning nuclear, thermal, hydropower, and renewable energy.
In a separate statement, KANSAI said the investment marks its first pumped storage hydropower investment outside Japan and can increase its attributable overseas power generation capability to about 2,500 MW.
“KANSAI’s investment within the project will leverage its knowledge and expertise, and promote the event and expansion of renewable energy each in Japan and overseas, contributing to the conclusion of a zero-carbon society,” the corporate said.
Juan Paolo E. Colet, managing director at China Bank Capital Corp., said KANSAI’s investment represents “a robust vote of confidence” within the Wawa project, noting the Japanese utility operates among the world’s largest pumped storage facilities.
“Their participation bolsters the industrial wisdom of First Gen’s decision to take a position within the pumped storage hydro projects of Prime Infra,” he told BusinessWorld.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said KANSAI’s participation enhances the project’s financial credibility beyond its technical expertise.
“The involvement of a globally recognized utility sends a positive signal to lenders, investors, and other strategic partners that the project has undergone rigorous industrial and technical evaluation.”