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The National Irrigation Administration (NIA) has formally authorized First Gen Corp. to develop the 120-megawatt Aya Pumped-Storage Project in Pantabangan, Nueva Ecija, marking a key milestone for a renewable energy facility designed to strengthen grid reliability, improve energy storage, and support long-term water resource management.
The Lopez-led power producer announced that it signed a memorandum of agreement (MOA) with NIA on June 30, granting the company the authority to develop, construct, operate, and maintain the Aya Pumped-Storage Project. The agreement will run for an initial 25 years and may be renewed for another 25 years.
The MOA also provides First Gen with NIA’s clearance and endorsement to secure the remaining permits required for the project, clearing a major regulatory hurdle as the company targets commercial operations by 2030.
Vital Energy Storage
The 120-MW Aya Pumped-Storage Project will utilize the Aya and Masiway reservoirs to store and generate electricity through pumped-storage hydropower technology. Unlike conventional hydroelectric facilities, the system cycles water between upper and lower reservoirs without water abstraction or loss.
During periods of low electricity demand, water will be pumped from the lower reservoir to the upper reservoir using surplus electricity. When demand increases, particularly during evening peak hours, the stored water will be released through turbines to generate electricity and help stabilize the grid.
First Gen Senior Vice-President Dennis Michael Gonzales said additional energy storage facilities are becoming increasingly important as the country’s power system accommodates greater amounts of renewable energy.
“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,” Gonzales said.
He added that Project Aya will also provide additional resources that will enable NIA to manage valuable water resources more effectively.
Complementing Existing Hydropower Assets
First Gen said the pumped-storage facility is expected to maximize the utilization of its existing hydroelectric assets in Nueva Ecija, particularly the 132-MW Pantabangan-Masiway Hydroelectric Power Plant and the 165-MW Casecnan Hydroelectric Power Plant.
By storing excess electricity and delivering it during periods of higher demand, the project is expected to enhance the operational flexibility of the company’s renewable energy portfolio while improving the reliability of power supply.
Beyond electricity generation, the project is also expected to support irrigation services for farmlands supplied by NIA infrastructure, highlighting its dual role in energy production and water management.
The Aya Pumped-Storage Project was previously estimated to cost about ₱6 billion.
Supporting Sustainable Development
NIA Administrator Eduardo Guillen described the project as a reflection of the agency’s partnership with First Gen in advancing sustainable infrastructure while maximizing the country’s water resources.
“We reaffirm our shared commitment to advancing sustainable development, strengthening energy security, and maximizing the benefits of our water resources for future generations through the development of the Aya Pumped-Storage Project,” Guillen said.
The project forms part of the government’s efforts to strengthen the country’s energy security by expanding flexible renewable energy infrastructure capable of balancing fluctuations in electricity demand and supporting the integration of more renewable generation into the national grid.
As of the end of 2025, First Gen had an installed renewable energy capacity of 1,764.2 megawatts from its hydro, geothermal, solar, and wind facilities across the country. The addition of the Aya Pumped-Storage Project is expected to further enhance the company’s renewable energy portfolio while reinforcing the role of energy storage in ensuring a more resilient and reliable electricity system.
Source:
https://business.inquirer.net/599096/first-gen-nia-advance-with-120-mw-hydro-project