First Gen Corp. has secured authorization from the National Irrigation Administration (NIA) to develop its planned 120-megawatt (MW) Aya Pumped Storage Project in Pantabangan, Nueva Ecija, clearing a key regulatory hurdle for the project, BusinessWorld reported.
The Lopez-led power producer said in a statement on Monday that it had signed a 25-year memorandum of agreement (MoA) with NIA. The agreement sets the terms for the use of NIA-controlled land and water resources for the pumped storage facility, which will store energy by pumping water to an upper reservoir during off-peak hours and releasing it to generate electricity when demand is high.
Pumped storage projects are critical for grid stability as they provide a large-scale battery-like function, absorbing excess renewable energy and discharging it as needed. The Aya project adds to First Gen's growing portfolio of renewable energy assets, which includes hydro, geothermal, wind, and solar plants across the Philippines.