First Gen Corporation signed a memorandum of agreement (MOA) on June 30, 2026, to develop the Aya Pumped-Storage Project (Aya PSP) in Pantabangan, Nueva Ecija, marking a major step forward for the 120-megawatt facility. The agreement grants First Gen full authority to develop, build, operate, and maintain the project, as well as official endorsement to secure all remaining required permits. The MOA is effective for 25 years and may be renewed for an additional 25 years.
Pumped-storage technology works by moving water between upper and lower reservoirs to store and generate power without consuming or losing water. The Aya PSP will use the existing Aya and Masiway Reservoirs: during periods of low demand, water is pumped from the lower to the upper reservoir to store energy; when needed, water is released back down to drive turbines and supply electricity or grid support services. As a flagship initiative, the project will complement First Gen’s existing 132-MW Pantabangan-Masiway and 165-MW Casecnan hydro facilities nearby, with commercial operations targeted to start by 2030.
Senior vice-president Dennis Michael Gonzales noted that the project’s flexible storage capacity will help stabilize the national power grid by matching supply to shifting demand and meeting peak evening needs, while also helping the National Irrigation Administration (NIA) manage water resources more effectively. NIA administrator Guillen emphasized the shared goal of advancing sustainable growth, strengthening energy security, and making the most of water resources for future generations.
The partnership aligns with the Marcos administration’s Bagong Pilipinas agenda focused on energy security, climate resilience, grid modernization, and expanded renewable energy use. It also supports NIA’s 7-Point Strategic Policy Agenda, particularly efforts to modernize irrigation infrastructure and broaden access to irrigation services across the country.
