MANILA, 14 February 2026 – Philippine renewable energy producer First Gen Corporation has agreed to invest $1.3 billion (approximately RM6.2 billion) to acquire a 40% stake in Prime Infrastructure Capital’s hydropower storage portfolio, marking one of Southeast Asia’s largest renewable energy investments aimed at strengthening grid reliability and accelerating clean energy transition.
The transaction significantly expands First Gen’s footprint in pumped-storage hydropower, an increasingly critical technology for stabilising electricity supply amid rising renewable energy adoption.
Strategic Investment Targets Large-Scale Hydropower Projects
The deal covers two major pumped-storage hydropower projects with a combined capacity of 2,000 megawatts (MW), including the 600 MW Wawa facility in Rizal province and the 1,400 MW Ahunan project in Laguna.
Pumped-storage hydropower plays a vital role in modern power systems by storing excess electricity generated during periods of low demand and releasing it when demand rises, helping to balance intermittent renewable energy sources such as solar and wind.
Of the total investment value, approximately 75 billion pesos ($1.3 billion) will fund construction, equity participation, and project development costs, reinforcing long-term infrastructure expansion.
Both projects have been designated by the Philippine government as Energy Projects of National Significance and were awarded capacity under the country’s green energy auction programme.
Strengthening Renewable Energy Portfolio and Grid Stability
The investment aligns with First Gen’s long-term strategy to expand its renewable energy portfolio and support national energy security.
First Gen, part of the Lopez Group, is one of the Philippines’ largest renewable and clean energy producers, with operations spanning geothermal, hydropower, natural gas, wind, and solar power generation.
By expanding into large-scale pumped-storage hydropower, the company strengthens its role in enabling renewable energy integration while enhancing grid reliability.
Energy storage infrastructure is becoming increasingly important as Southeast Asian economies accelerate their transition toward low-carbon power systems.
Partnership with Prime Infrastructure Deepens Strategic Collaboration
Prime Infrastructure Capital, controlled by Philippine billionaire Enrique Razon Jr., will continue to lead development and execution of the hydropower projects, with First Gen contributing technical expertise and project execution capabilities.
The partnership builds on existing cooperation between the companies and reflects growing collaboration between private energy firms to develop large-scale clean energy infrastructure.
Prime Infra’s hydropower facilities are designed to support grid stability, ensuring consistent power supply even as renewable energy penetration increases.
Southeast Asia Renewable Energy Investments Accelerating
The deal highlights growing investment momentum in Southeast Asia’s renewable energy sector, driven by rising electricity demand, decarbonisation targets, and government incentives.
Countries such as the Philippines are expanding renewable energy capacity to reduce dependence on imported fossil fuels and improve long-term energy security.
Hydropower and energy storage infrastructure are emerging as key pillars of the region’s clean energy transition, complementing solar and wind power expansion.
Investor Perspective: Renewable Energy Infrastructure Emerging as Major Growth Sector
First Gen’s $1.3 billion investment signals strong confidence in the long-term growth potential of renewable energy infrastructure across Southeast Asia.
Energy storage and hydropower projects are expected to play a critical role in stabilising power systems, supporting economic growth, and enabling large-scale renewable adoption.
For investors, the deal underscores the increasing importance of renewable energy assets as strategic infrastructure investments offering long-term growth, stable cash flows, and environmental sustainability benefits.
As Southeast Asia accelerates its transition to cleaner energy systems, companies such as First Gen are positioning themselves at the forefront of the region’s renewable energy transformation.
