By Sheldeen Joy Talavera, Reporter
A JAPANESE electric utility has acquired a minority stake in the 600-megawatt (MW) Wawa pumped storage hydropower project, joining Razon-led Prime Infrastructure Capital, Inc. and Lopez-led First Gen Corp. in developing the $2.57-billion energy storage facility in Rizal.
In a statement on Thursday, First Gen said Kansai Electric Power Co., Inc. (KANSAI) had entered into a definitive agreement to acquire a 14% interest in PMJVCo Holdings, Inc., a subsidiary of Prime Hydropower Energy, Inc. (PHEI).
Following the transaction, PMJVCo will be 86%-owned by PHEI, which is 33%-owned by FGEN Aqua Power Holdings, Inc., a subsidiary of First Gen.
The transaction will give KANSAI an indirect 12.18% interest in Olympia Violago Water & Power, Inc. (OVWPI), a PMJVCo subsidiary developing the Wawa pumped storage hydropower project.
The project will have a storage capacity of 6,000 megawatt-hours (MWh) per day and is expected to begin operations by 2030. It has been certified as an Energy Project of National Significance by the Department of Energy (DoE).
KANSAI is a Japanese electric utility engaged in the generation, transmission, and distribution of electricity, with a portfolio spanning nuclear, thermal, hydropower, and renewable energy.
In a separate statement, KANSAI said the investment marks its first pumped storage hydropower investment outside Japan and will increase its attributable overseas power generation capacity to about 2,500 MW.
“KANSAI’s investment in the project will leverage its knowledge and expertise, and promote the development and expansion of renewable energy both in Japan and overseas, contributing to the realization of a zero-carbon society,” the company said.
Juan Paolo E. Colet, managing director at China Bank Capital Corp., said KANSAI’s investment represents “a strong vote of confidence” in the Wawa project, noting the Japanese utility operates some of the world’s largest pumped storage facilities.
“Their participation bolsters the commercial wisdom of First Gen’s decision to invest in the pumped storage hydro projects of Prime Infra,” he told BusinessWorld.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said KANSAI’s participation enhances the project’s financial credibility beyond its technical expertise.
“The involvement of a globally recognized utility sends a positive signal to lenders, investors, and other strategic partners that the project has undergone rigorous commercial and technical evaluation.”
