The National Irrigation Administration (NIA) has authorized First Gen Corp. to develop its planned 120-megawatt (MW) Aya Pumped Storage Project in Pantabangan, Nueva Ecija, clearing a key regulatory hurdle for the project.
In a statement, the Lopez-led power producer said it had signed a 25-year memorandum of agreement (MoA) with NIA authorizing the company to develop, construct, operate, and maintain the pumped-storage hydropower facility.
The agreement gives First Gen the clearance and endorsement to secure the remaining permits needed for the project, which is renewable for another 25 years.
The Aya Pumped Storage Project is targeted to begin commercial operations by 2030 and will utilize the Aya and Masiway reservoirs to store and generate electricity by pumping water from a lower reservoir to an upper reservoir during periods of low electricity demand and releasing it through turbines to generate power when demand rises.
The project is expected to maximize the utilization of First Gen's existing hydropower assets in the area, namely the 132-MW Pantabangan-Masiway plant and the 165-MW Casecnan plant.
First Gen Senior Vice-President Dennis Michael P. Gonzales said the project will provide more resources for NIA to effectively manage valuable water resources and support efforts to stabilize the electricity grid in terms of addressing load variation and shifting energy supply to support evening peak demand.
NIA Administrator Eddie G. Guillen said the project supports efforts to strengthen the country's energy security while maximizing the use of water resources.
First Gen had an installed renewable energy capacity of 1,764.2 MW from its hydro, geothermal, solar, and wind facilities nationwide as of end-2025.
