| THE AYALA WAY

Vol 6 No 45

"This partnership represents a milestone in our collective efforts to address the enormous challenges of the energy transition. By pioneering the Transition Credits mechanism, we are not only accelerating decarbonization but also demonstrating a viable pathway for coal-dependent economies to transition sustainably. We hope this will serve as a catalyst for other coal plant owners to embark on their clean energy journey."

ERIC T. FRANCIA
ACEN President and CEO

ACEN Group CFO and Group Chief Strategy Officer Jonathan Back, GenZero CEO Frederick Teo, ACEN President and CEO Eric Francia, Keppel’s Infrastructure Division CEO Cindy Lim, DGA CEO Shinichiro Suzuki, and Mitsubishi Corporation Deputy General Manager of the Asia Oceania Power Business Department Tatsuki Matsuda

IMAGINE IT BETTER · CREATE VALUE TOGETHER

ACEN Welcomes New Partners for Transition Credits

Mitsubishi Corporation and its subsidiary, Diamond Generating Asia Ltd., have joined ACEN, GenZero, and Keppel Ltd. in exploring a potential collaboration for the early retirement of a 246 MW coal-fired power plant in the Philippines and replacing its generation output with clean and reliable energy.

Mitsubishi and DGA have signed a deed of accession to the memorandum of understanding established in 2024 between ACEN, GenZero, and Keppel, for a pioneering effort that leverages the Transition Credits mechanism. This strategic alliance signals a new era of innovation in climate finance and energy transformation.

For background, ACEN implemented the world’s first market-based Energy Transition Mechanism, reaching financial close in November 2022. The transaction involved the divestment of the South Luzon Thermal Energy Corporation (SLTEC) coal plant, with a commitment to retire it by 2040 and transition it to renewable energy technology.

ACEN now seeks to accelerate SLTEC’s retirement target to 2030. Transition Credits will play a crucial role in ensuring a just transition by making replacement power affordable and supporting affected workers and the local community.

This potential partnership seeks to evaluate the feasibility of leveraging Transition Credits to accelerate the early retirement of coal-fired power plants in favor of sustainable, clean alternatives. The participation of Mitsubishi and DGA, which have been long-standing partners of ACEN, also enhances access to the Japanese market, which plays a significant role in global decarbonization efforts, and could support the emissions trading scheme in Japan.

Read the full press statement at ACENRenewables.com.