Ahunan Power Inc. (Ahunan), a subsidiary of Enrique Razon Jr.-led Prime Infrastructure Capital Inc., cornered a majority stake in Olympia Violago Water and Power Inc. (OVWPI).
In a statement on Friday, Prime Infra said Ahunan entered into an agreement to acquire a 67-percent stake interest in OVWPI, a renewable energy developer.
Some details of the deal including the timeline and acquisition price were not disclosed.
OVWPI, a sister company of San Lorenzo Ruiz Builders and Developers Group Inc. (SLRB) of Oscar Violago, is developing a 500-megawatt (MW) Wawa Pumped Storage Hydropower (PSH) project in Rizal.
The pumped storage facility is currently in the predevelopment stage, with construction set to commence next year.
“With an expected total project cost of $1 billion, the project is an energy storage asset capable of delivering 500 MW of mid-merit and peak energy to the Philippine power market,” said SLRB on its website.
“The Wawa Project will contribute to stability in the Luzon power grid by providing a reliable source of power during peak demand hours and consuming power during off-peak hours,” it added.
According to Prime Infra, the PSH plants store and generate electricity by moving water between two reservoirs at different elevations.
“Water is pumped from the lower reservoir to the upper reservoir during off-peak hours to store underutilized energy, then released from the upper reservoir to the lower reservoir to generate electricity in times of high demand,” it said.
After the transaction is closed, Prime Infra’s energy storage capacity will increase by 6,000 megawatt hours a day.
“The agreement will integrate Ahunan and OVWPI’s capabilities in support of Prime Infra’s energy business objective—to respond quickly to demand through clean and renewable power,” said Prime Infra president and CEO Guillaume Lucci.
“Ahunan’s hydropower projects are aligned with the government’s thrust to accelerate the development of renewable energy resources, and reduce heavy reliance on fossil fuels,” Lucci added.