LOPEZ-LED First Gen Corp. expects that its investments in hydropower projects managed by Prime Infrastructure Capital, Inc. led by Razon to contribute R16 billion annually from 2031, likely to be the largest contributor of income across its portfolio.
First President and Chief Operating Officer, Francis Giles B. Puno said the company is making long-term investments in pumped-storage power assets, which he said are expected to be “one of the most important parts of the future energy system.”
“As renewables continue to grow, one of the main challenges facing electric power systems is no longer just production, but operational flexibility – the ability to store energy when availability is plentiful, and deliver it when the system needs it most,” he said at the company’s annual shareholder meeting on Thursday.
First Gen has invested P62 billion for a 33% stake in Prime Infra’s 2,000-megawatt (MW) pumped-storage hydropower portfolio.
Mr. Puno said that these facilities are expected to contribute significantly to the company’s revenue through a 20-year contract agreement under the government’s green energy auction program.
The projects are expected to generate three times the historical average contribution from the 60% portion of natural gas sold to Prime Infra, based on operations from 2018 to 2024, he said.
“Although these projects require upfront capital and several years of construction before revenue generation, the long-term economics remain compelling,” said Mr. Puno.
As of the end of 2025, First Gen had an installed renewable energy capacity of 1,764.2 MW from hydro, geothermal, solar, and wind facilities across the country.
The company operates the Pantabangan-Masiway complex and the Casecnan power plant in Nueva Ecija. The facilities generated 1,074.8 gigawatt hours last year, more than double the output recorded in 2024.
First Gen is also preparing for the development of the 120-MW Aya Pumped Storage Project near the Pantabangan plant.
Separately, First Gen Chief Executive Officer Federico “Piki” R. Lopez said he hopes for a “peaceful, just, and lasting resolution to the rift” involving the Lopez family.
“I remain fully prepared for any outcome that will follow this peace decision and will continue to fulfill my fiduciary duties to all shareholders of the Lopez Group companies,” said Mr. Lopez.
His statement came after the Lopez family’s majority holding company, Lopez, Inc. reversed the board’s Feb. 27 to remove Mr. Lopez as president and chief executive officer.
The majority of Lopez previously released Mr. Lopez to the company, citing the loss of trust and confidence in the P125 billion electricity and gas contracts, which were allegedly entered into without their knowledge.
Mr. Puno told shareholders that the hydroelectric deal received “unanimous approval following several questions, explanations, discussions, and analysis among the directors.”
Shares in First Gen fell 2.38% to P15.60 each on Thursday. – Sheldeen Joy Talavera
