First Gen boosts 2026 capex to P41.7B
LOPEZ-LED power producer First Gen Corp. has set aside P41.7 billion in capital expenditure (capex) this year as it advances a proposed investment in a 2,000-megawatt (MW) pumped storage hydropower portfolio.
The capex allocation is higher than last year’s P33.5 billion.
Speaking to reporters last week, First Gen President and Chief Operating Officer Francis Giles B. Puno described the planned investment as “a very exciting prospect for hydro in the Philippines.”
The company is set to acquire a 40% equity interest in Prime Infrastructure Capital, Inc.’s (Prime Infra) pumped storage hydropower portfolio for P75 billion.
The transaction covers Prime Infra’s 600-MW Wawa pumped storage hydropower project in Rizal province and the 1,400-MW Ahunan project in Laguna.
These facilities will complement First Gen’s existing 132-MW Pantabangan-Masiway and 165-MW Casecnan hydroelectric power plants, providing grid stability and reliability.
The company is also developing the 100-MW Aya pumped storage project in Nueva Ecija.
The projects form part of First Gen’s broader expansion strategy, which aims to grow its energy portfolio to 13 gigawatts (GW) by 2030. The company previously estimated around $20 million in required investment to achieve this target.
Mr. Puno said the company is reviewing its plans amid soft market conditions.
“We’re reviewing our plans because, at the same time, the market has also not grown, it’s not like you can build. So, we’re also adjusting based on the market needs. But, certainly, whenever there’s geothermal potential, we want to pursue that,” he said.
First Gen currently has a total installed capacity of over 3,700 MW across natural gas, geothermal, hydropower, wind, and solar technologies.
The company has yet to disclose its full-year 2025 income results but reported steady earnings for the nine-month period.
For January to September, First Gen’s attributable net income rose 4% to $215.4 million, as higher contributions from its hydropower portfolio offset declines in natural gas and geothermal earnings. — Sheldeen Joy Talavera
