ACEN maps out transition for SLTEC

MANILA, Philippines — ACEN Corp., the listed energy platform of the Ayala Group, is teaming up with global platform Coal Asset Transition Accelerator (CATA) in mapping out a blueprint for the energy transition of its coal-fired power plant.

ACEN launched its Just Energy Transition (JET) roadmap for the 246-megawatt (MW) South Luzon Thermal Energy Corp. (SLTEC) coal-fired power plant at the 2023 United Nations Climate Change Conference in Dubai.

ACEN CEO Eric Francia said the JET roadmap, which is being developed in partnership with the CATA, would have six priority areas for implementation.

These include clean energy replacement, power plant decommissioning, asset repurposing, community transition, worker reskilling and redeployment, and cascading learnings and continuous improvement.

ACEN said the roadmap builds on the momentum generated by the company’s energy transition mechanism (ETM), the world’s first and only market-based transaction to successfully program the early retirement of a coal-fired power plant.

“While the planned coal to clean transition for SLTEC is scheduled more than a decade from now, it is never too early to develop a long-term roadmap. This will ensure that the transition is carried out in a just, thorough and proactive manner,” Francia said.

“We are thankful for the partnership with CATA and Climate Smart Ventures (CSV) on this pioneering Just Energy Transition initiative, and more than happy to share learnings with the broader industry,” he said.

CATA is a global platform empowering coal asset owners, alongside government financiers, and local stakeholders, to put in place financial mechanisms that will support the acceleration of the transition away from coal in a just and inclusive way.

CATA to date has initiated six technical assistance projects across multiple countries.

Its core partners are CSV, Carbon Trust, and Rocky Mountain Institute, and is supported by the European Climate Foundation, Growald Climate Fund and IKEA Foundation.

“With the launch of its Just Energy Transition Roadmap, ACEN has yet again produced a world’s first by being the first private power company in Asia to clearly articulate its plans for holistically addressing the future of a coal-fired power plant set for early decommissioning,” CSV managing partner Lawrence Ang said.

“ACEN’s partnership with CATA can serve as a model for how CATA can support plant owners and financiers in their journey to transition toward renewables. This includes ensuring a diverse set of voices, and interests are included in the energy transition,” Ikea Foundation chief programs officer Maria Bezerra said separately.

Growald Climate Fund CEO Joanna Messing said the roadmap has the potential to be a replicable model for other asset owners seeking to transition their coal assets.

“In the same manner that the ACEN ETM has set the standard for commercial-based coal retirement transactions, the ACEN JET Roadmap has the potential to be a model that asset owners can replicate and from which policymakers can derive valuable insights,” Messing said.

ACEN currently has operations across several countries including in the Philippines, Indonesia, Vietnam, Laos, India, Australia and the US.

The company aims to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 gigawatts of renewables capacity by 2030.

It has also committed to achieving net zero by 2050 and 100 percent renewable generation by 2025.