SN Aboitiz Power-Magat Inc. plans to develop a 97-megawatt pumped storage hydropower project in Isabela and Ifugao provinces at an estimated cost of P13.5 billion, the company said in a report to the Department of Environment and Natural Resources.
The proposed facility will have a development timeline of up to 4 years. SNAP-Magat will develop the project independently, and it will not add to the existing 388-megawatt capacity of the Magat hydropower plant.
The operating hydroelectric power plant occupies about 3.6 hectares. SNAP-Magat will build the proposed facility within the plant’s existing footprint, and it will not require additional area outside its current coverage.
SNAP acquired the Magat Hydropower Station from the National Power Corp. through a public auction in April 2007, and it now owns and operates the project.
“The existing Magat River Project has been designed as a multipurpose project, providing irrigation and using the water for the generation of peaking power. SNAP is considering the technical and economic viability of extending the power generation capacity of the current power station by installing a pumped storage hydropower facility,” SNAP-Magat said through Jacobs Projects (Philippines) Inc., the preparer of its environmental performance report and management plan.
SNAP-Magat said the Department of Energy recognizes pumped storage hydropower as a strategic form of large-scale energy storage that allows excess renewable energy to be stored and dispatched during peak demand periods.
The company said pumped-storage facilities support frequency regulation, reserve requirements and peak load management, making them indispensable for ensuring system stability as intermittent renewable capacity increases.
The Magat plant is one of the largest and most strategically located hydropower facilities in Luzon, with a dependable capacity of 388 megawatts.
Developed originally for irrigation, flood control and power generation, the facility has evolved into a critical peaking and reliability resource for the Luzon grid, contributing dispatchable renewable electricity during periods of high demand and system stress.
SNAP-Magat said the plant exemplifies the type of indigenous, large-scale renewable infrastructure that the Department of Energy considers essential to achieving long-term energy security and decarbonization.
“Existing hydropower assets such as Magat provide firm, low-carbon capacity that stabilizes the system as solar and wind capacity expands,” the company said.
It said the plant’s operational characteristics—fast ramping, peaking capability and the ability to provide ancillary services—align directly with the Department of Energy’s recognition that hydropower is a system-enabling technology rather than merely an energy source.
“In this context, the proposed Magat PSH facility takes on added significance for both Region 2 and CAR. Regional development plans consistently highlight the need for grid stability and energy resilience to support industrial growth, post-pandemic recovery and climate adaptation,” SNAP-Magat said.
The company said the pumped-storage expansion would further stimulate construction-phase employment, long-term technical jobs and associated investments in transmission, digital operations and storage technologies, reinforcing the regions’ positions in the national energy value chain.
“As regional planning increasingly converges with national energy and climate goals, Magat’s existing and future roles exemplify how large, integrated hydropower systems can drive sustainable, inclusive and resilient regional progress in Northern Luzon,” the company said.
The expansion presents an opportunity to scale up existing community benefits in Ramon and Alfonso Lista. During construction, the project would generate temporary employment, local procurement opportunities and service demand, while long-term operations would require skilled technical and support personnel.
