First Gen Corp has agreed to acquire a 40% stake in a 2 GW pumped storage hydro portfolio in the Philippines from Prime Infrastructure for PHP 75 billion ($1.29 billion). Notably, PHP 62.5 billion of the enterprise value is earmarked to fund construction and equity requirements.

The signal is clear: this is a structured capital partnership to fund delivery risk, not an acquisition of operating cash flows.

The portfolio includes the 1,400 MW Pakil and 600 MW Wawa projects, both under construction and targeting COD by December 2030. Combined capex exceeds $7.6 billion. Both projects are certified as Energy Projects of National Significance and will connect to the Luzon grid. EPC risk sits with Power China, while Toshiba and Andritz Hydro are supplying key equipment.

Revenue visibility is anchored by Green Energy Auction 3 awards, with approved tariffs of PHP 5.4/kWh (Pakil) and PHP 5.35/kWh (Wawa). There is also a proposed 500 MW mid-merit supply to Meralco, subject to challenge.

Commercially, this deal shows large-scale storage in emerging markets is now being financed through equity recycling at construction stage, supported by tariff-backed offtake. Sponsors are bringing in balance-sheet partners before completion to manage capex intensity and execution exposure.

For the Philippines market, it signals that long-duration storage is moving from policy ambition to funded buildout.

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