A Japanese electric utility has acquired a minority stake in the 600-megawatt (MW) Wawa pumped storage hydropower project in Rizal, joining Razon-led Prime Infrastructure Capital, Inc. and Lopez-led First Gen Corp. in developing the $2.57-billion energy storage facility, BusinessWorld reported.
Pumped storage hydropower acts like a giant battery, using excess electricity to pump water uphill into a reservoir, then releasing it through turbines to generate power when demand spikes. The project is expected to bolster grid stability and support the integration of intermittent renewable sources like solar and wind.
The entry of a Japanese utility underscores foreign interest in the Philippines' energy storage market. Prime Infrastructure and First Gen each hold significant stakes in the venture, which is seen as critical to meeting the country's growing power needs and renewable energy targets.