₱273.5-B pumped storage projects set to strengthen Philippines’ energy supply

The Philippines is set to gain two major pumped storage hydropower facilities, with a combined capacity of 2,000 MW, after Prime Infra secured ₱273.47 billion in financing. 

These projects, to be implemented by Prime Infra, aim to address the country’s growing electricity demand while improving the stability and resilience of the power grid.

The 1,400-MW facility in Laguna and the 600-MW facility in Rizal will function like large-scale batteries, storing excess energy produced during low-demand periods and releasing it during peak hours. 

Industry analysts note that this capability is crucial as the Philippines increases its reliance on intermittent renewable sources such as solar and wind. By acting as large-scale “batteries,” pumped storage plants help prevent supply shortages and reduce the risk of outages.

Financing for the projects includes a ₱214.87-billion green loan from a consortium of local banks—Bank of the Philippine Islands, BDO Unibank, Metropolitan Bank & Trust Company, Land Bank of the Philippines, Philippine National Bank, Security Bank Corporation, Union Bank of the Philippines, and China Banking Corporation—with support from MUFG Bank.

Complementing this is a ₱58.6-billion dual-currency standby credit facility from global lenders Mizuho Bank and Sumitomo Mitsui Banking Corporation.

Prime Infra President and CEO Guillaume Lucci said the strong backing from both local and international banks reflects confidence in the company’s ability to deliver critical infrastructure.

The facilities were awarded under the Department of Energy’s Green Energy Auction Program and classified as projects of national significance. They also support government targets of 35% renewable energy in the power mix by 2030 and 50% by 2040. 

Once completed, the projects are expected to enhance energy security, reduce dependence on fossil fuels, and ensure a more stable and resilient electricity supply for the country.

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