“With this investment in the Project, KANSAI’s total attributable generation capacity in its overseas power business portfolio has increased to approximately 2,500 MW,” First Gen said on Thursday, adding the Wawa project would be Kansai's first pumped storage hydropower investment outside Japan.
The Wawa project is designed to generate up to 600 megawatts of electricity and store up to 6,000 megawatt-hours of energy by pumping water between two reservoirs, helping supply electricity during periods of high demand.
Deal expert: Kansai entry a strong vote of confidence
"Kansai Electric Power is one of the leading energy companies in Japan and operates some of the world's largest pumped storage power facilities, so their investment is a strong vote of confidence in the Wawa project and further validates the quality of the asset," said Juan Paolo Colet, managing director at China Bank Capital.
"Their participation bolsters the commercial wisdom of First Gen's decision to invest in the pumped storage hydro projects of Prime Infra.Japanese companies are actively exploring opportunities in the Philippines, and we expect more investments in due course," he added.
First Gen remains a key shareholder
Following the investment, Prime Hydropower Energy Inc., which is 67 percent owned by Prime Infra and 33 percent by First Gen through FGEN Aqua Power Holdings Inc., will retain an 86 percent stake in the project’s holding company, while Kansai will own the remaining 14 percent.
The holding company controls Olympia Violago Water & Power Inc., which owns and is developing the Wawa project in Rizal. The Department of Energy has designated it an Energy Project of National Significance, with commercial operations targeted to begin in 2030.
Supports renewable energy transition
Kansai said it will leverage its experience in developing, operating and maintaining pumped storage hydropower projects while supporting the Philippines’ transition to renewable energy, where large-scale energy storage is needed to help keep the power grid stable.
—Edited by Miguel R. Camus
