First Gen says hydropower projects may yield P16B annually by 2031

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 largest earnings contributor across its portfolio.

First Gen President and Chief Operating Officer Francis Giles B. Puno said the company is making a long-term investment in pumped-storage hydropower assets, which he said are expected to become “one of the most critical segments of the future energy system.”

“As renewables continue to scale, one of the central challenges facing power systems is no longer simply generation, but operational flexibility — the ability to store energy when supply is abundant, and deliver it when the system needs it most,” he said at the company’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 significant contribution to the company’s earnings through a 20-year contracted agreement under the government’s green energy auction program.

The projects are expected to generate three 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 several years for construction before meaningful cash flow generation, the long-term economics remain compelling,” Mr. Puno said.

As of end-2025, First Gen had an installed renewable energy capacity of 1,764.2 MW from hydro, geothermal, solar, and wind facilities nationwide.

The company operates the Pantabangan-Masiway complex and the Casecnan hydroelectric facility 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 adjacent to the Pantabangan facility.

Separately, 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 outcome that will follow this peace overture and I will continue to fulfill my fiduciary duties to all shareholders in the companies of the Lopez Group,” Mr. Lopez said.

His statement came after the majority 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 company, citing loss 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 analysis among the directors.”

Shares in First Gen fell 2.38% to P15.60 each on Thursday. — Sheldeen Joy Talavera