Philippine billionaire Enrique K. Razon Jr.’s company, Prime Infra, is investing $7.6 billion to build two pumped storage hydropower plants in the Philippines. One project, being developed by Prime Infra’s subsidiary Ahunan Power, will be located in Pakil, Laguna, south of Manila. This facility will have the capacity to generate 1,400 megawatts of electricity and store up to 14,000 megawatt hours daily. Another project, by Prime Infra’s unit Olympia Violago Water Power, will be located at the Wawa dam in Rizal province, east of Manila, and will have a generating capacity of 600 megawatts and storage capacity of 6,000 megawatt hours daily.
Both projects have received Certificates of Energy Project of National Significance from the Department of Energy, allowing for fast-track issuance of permits. These pumped storage facilities will help reduce the country’s reliance on coal-fired power plants and enhance grid security through flexible energy generation. Prime Infra’s president and CEO, Guillaume Lucci, emphasized the importance of these projects in enabling the energy transition and meeting current energy demands.
The two pumped storage projects are critical in tackling the challenges of a dynamic energy landscape and are expected to start commercial operations in 2030. Razon, who is a major shareholder in International Container Terminal Services Inc. and Bloomberry, has been increasing investments in water and energy infrastructure projects through Prime Infra. Despite canceling an initial public offering in 2022 due to market volatility, Razon’s real-time net worth stands at $10.1 billion, and he also controls water utility Manila Water.
The pumped storage hydropower plants will utilize water flow at dams to power electric turbines and store energy. With the increasing demand for renewable energy sources, these projects will play a significant role in the country’s energy transition. The government’s support for these projects, as indicated by the Certificates of Energy Project of National Significance, highlights the importance of sustainable energy solutions in reducing carbon emissions and ensuring grid reliability.
Prime Infra’s commitment to leveraging pioneering solutions in energy generation demonstrates their dedication to meeting the challenges of a rapidly evolving energy landscape. Razon’s strategic investments in water and energy infrastructure projects through Prime Infra reflect a long-term vision for sustainable development in the Philippines. With the completion of these projects, the country will be in a stronger position to address its energy needs and reduce its reliance on fossil fuels.
