First Gen Hydro Power Corp. in the Philippines, of the Lopez Group, is investing PHP6 billion (US$124.8 million) to develop the 120-MW Aya pumped-storage project in Pantabangan, Nueva Ecija.

FGHPC, the hydro arm of First Gen Corp., said in a report to the Department of Environment and Natural Resources the proposed storage facility aimed to address the intermittent regulation of power in Luzon. “This will also provide technical capability in delivering ancillary services, which will allow for full-year operations of independent irrigation demands from the Pantabangan Reservoir,” it said.

The project will tap the Aya and Masiway reservoirs. The conventional pumped-storage plant will have two 60-MW pump-turbine units.

In December 2019, FGHPC received a hydropower service contract from the Department of Energy for the exclusive development of the project.

FGHPC said Luzon’s growing demand for power placed a strain on the electricity grid and that the company was pursuing the project to partially address these demands and provide stability to support the utilization of renewable energy.

FGHPC said the Aya pumped-storage project is aligned with the government energy policies and the National Renewable Energy Plan through its significant contribution to the Luzon Grid. It said the project would contribute to the hydropower sector, fill the need for the expected increase in energy demand and introduce clean energy that is environmentally sustainable and more affordable than fossil-fuel power plants. It would also contribute to the projected total installed capacity of 6,207.5 MW for hydropower in Luzon by 2030.