Lopez, Razon trim hydropower deal

First Gen Corp., led by the Lopez Group, is cutting back on its investment in Prime Infrastructure Capital Inc.’s hydropower assets, as the group now intends to buy a 33-percent stake for P61.87 billion.

The equity interest is lower than the initial 40-percent buy-in plan, earlier valued at P75 billion.

The renewable energy producer on Monday disclosed to the local bourse that both parties had already executed an agreement for the acquisition on March 6.

Under the deal, the Lopez-backed FGEN Aqua Power Holdings, Inc. will buy 6.67 percent of Prime Hydropower Energy Inc. (PHEI) shares from Prime Infrastructure. This portion of the transaction is pegged at P12.5 billion in cost.

FGEN Aqua will also inject P49.37 billion into the hydro firm, which will translate to a 26.33-percent additional interest in PHEI.

The transaction is seen to strengthen First Gen’s renewable reach as PHEI controls the 1,400-megawatt (MW) Pakil Pumped Storage Hydroelectric Power Project in Laguna, and the 600-MW Wawa Pumped Storage Hydroelectric Power Project in Rizal.

Still keen on renewable energy

First Gen could not immediately provide the reason for trimming its investments in Razon’s hydropower portfolio when asked.

The company, after downsizing its control in natural gas assets, seeks to tighten its grip in the booming renewable energy market through higher investments for geothermal, hydro and solar facilities.

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For 2026, First Gen has committed to spending P41.7 billion, 24 percent up from last year’s P33.5 billion.

Currently, the firm boasts of more than 1,700 MW of capacity from 28 geothermal, hydro, wind and solar facilities across the country. It also continues to hold 40 percent in four gas-fired power plants with a capacity of 2,017 MW.

The bulk of its renewable energy capacity is sourced from geothermal sites, making it the leading geothermal producer in the Philippine market.