First Gen, NIA advance with 120-MW hydro project

MANILA, Philippines – Lopez-led First Gen Corp. and the National Irrigation Administration (NIA) have signed an agreement to develop and operate a 120-megawatt pumped-storage hydro facility in Nueva Ecija.

In a disclosure on Monday, First Gen signed the memorandum of agreement (MOA) on June 30, kicking off development of the Aya Pumped-Storage Project (Aya Project) in Pantabangan, Nueva Ecija.

READ: First Gen banking on hydro power plants

Article continues after this advertisement

The agreement authorizes First Gen to develop, construct, operate and maintain the Aya project. The deal also provides the company the clearance and endorsement from NIA to secure other permits required for the project.

FEATURED STORIES

BUSINESS

BUSINESS

BUSINESS

The MOA will run for 25 years and may be renewed for another 25 years.

Once completed, the facility will generate 120 MW of renewable energy and support irrigation for farmlands served by NIA infrastructure.

“More facilities with storage and highly flexible operating parameters are key to stabilizing the electricity grid, in terms of addressing load variation and shifting energy supply to support evening peak demand. Project Aya will provide more resources for NIA to effectively manage valuable water resources,” said Dennis Michael Gonzales, First Gen senior vice-president.

For his part, NIA administrator Eduardo Guillen said the project reflects both parties’ commitment to sustainable development, energy security and efficient water use.

Article continues after this advertisement

READ: NIA irrigation water to be realigned

Unlike conventional hydropower plants, pumped-storage facilities cycle water between upper and lower reservoirs to store and generate electricity.

Article continues after this advertisement

The Aya project will pump water uphill during off-peak hours and release it to generate electricity when demand rises.

First Gen said the project will complement and boost the use of its 132-MW Pantabangan-Masiway and 165-MW Casecnan hydro plants. The project aims to begin commercial operations by 2030. /pai INQ

Your subscription could not be saved. Please try again.

Your subscription has been successful.