THE National Irrigation Administration (NIA) and the First Gen Group signed on June 30, 2026 a memorandum of agreement (MOA) for the development of the Aya Pumped-Storage Project (Aya PSP) in Pantabangan, Nueva Ecija.

The MOA between the two parties marks a milestone in proceeding with the actual development of the 120-megawatt (MW) project. The MOA authorizes First Gen to develop, construct, operate and maintain the Aya PSP. It also gives First Gen the clearance and endorsement to secure all other permits needed by the project. The MOA is valid for 25 years and is renewable for another 25 years.

“More facilities with storage and highly flexible operating parameters are key to stabilize the electricity grid, in terms of addressing load variation and shifting energy supply to support evening peak demand. Project Aya will provide more resources for NIA to effectively manage valuable water resources,” said Dennis Michael Gonzales, First Gen senior vice president.

“We reaffirm our shared commitment to advancing sustainable development, strengthening energy security, and maximizing the benefits of our water resources for future generations through the development of the Aya Pumped-Storage Project,” NIA administrator Engr. Eddie Guillen added.

Aya PSP will utilize the Aya and Masiway reservoirs to cycle and store water to generate energy. To store energy, the project pumps water from the lower reservoir to the upper reservoir, then provides energy or ancillary services to the grid by releasing water back to the lower reservoir to drive an underground power plant.

A flagship project of First Gen, Aya PSP aims to maximize the utilization of two other First Gen-owned hydro power facilities within the area—the 132-MW Pantabangan-Masiway plant and the
165-MW Casecnan plant. Aya PSP is targeted for commercial operation by 2030.

L-R: NIA officials Engr. Ronaldo Salazar and Engr. Alvin Manuel of Upper Pampanga River Integrated Irrigation Systems;
deputy administrator Robert Victor Seares Jr.; senior deputy administrator Engr. Robert Suguitan; and administrator
Engr. Eddie Guillen; First Gen senior vice president

By Joel Gaborni