Accelerating the Orderly and Just Transition to Clean Energy

The MOU signing ceremony held on August 16 was led by (seated) ACEN President and CEO Eric Francia, Ayala Corporation President and CEO Cezar "Bong" Consing, Singapore Minister for Sustainability and the Environment Grace Fu, DENR Secretary Maria Antonia Yulo-Loyzaga, Keppel Infrastructure Division CEO Cindy Lim, GenZero CEO Frederick Teo, (standing, center) ACEN Board Director Jaime Alfonso Zobel de Ayala, and Ayala Corporation Chairman Jaime Augusto Zobel de Ayala and Board Director Fernando Zobel de Ayala.

Partnership is an integral part of Ayala’s strategy and culture. We look forward to this potential partnership among regional champions in energy transition.

CEZAR P. CONSING
AC President and CEO

ACEN has signed a memorandum of understanding with the Temasek group's GenZero and Keppel Ltd. to jointly explore the origination and utilization of transition credits towards the retirement of the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant (CFPP) in Batangas, and to replace it with a clean energy dispatch facility.

When completed, this project is expected to be one of the first converted CFPPs in the world to generate transition credits. This pioneering initiative reflects the shared commitment of the partners to accelerate the orderly and just transition to clean energy in Southeast Asia.

CFPPs are the single largest source of carbon emissions globally. Southeast Asia is home to the fourth largest CFPP fleet in the world, which is also among the youngest with an average age of less than 15 years. The early retirement of CFPPs such as SLTEC is, therefore, a critical step for the region towards achieving the Paris Agreement goals and global net zero targets by 2050.

Said ACEN President and CEO Eric Francia: “We appreciate the strong support of Keppel and GenZero for this pioneering initiative. The Philippines is at the forefront of energy transition initiatives, and this collaboration potentially unlocks further opportunities in the country. We also believe that this model can scale across the region, and even globally.”

In retiring the SLTEC CFPP, the partners will take into account environmental, social, and governance considerations and best practices. These include training workers and communities, asset repurposing, and decommissioning the plant in a manner that minimizes the impact on communities and the local environment. The project will be carried out in collaboration with the Rockefeller Foundation’s Coal to Clean Credit Initiative and the Monetary Authority of Singapore’s Transition Credits Coalition (TRACTION).

Read the full story at www.acenrenewables.com