ACEN completes exit from diesel-run assets

MANILA, Philippines — Ayala-led ACEN Corp. has moved a step closer to becoming a 100-percent renewable energy company after fully divesting from its remaining diesel plants.

The company said in a disclosure to the Philippine Stock Exchange that it signed last Friday a deed of absolute sale of shares with its majority shareholder, AC Energy and Infrastructure Corp. (ACEIC), for the divestment.

The sale covers ACEN’s ownership interests in Bulacan Power Generation Corp., One Subic Power Generation Corp. and CIP II Power Corp.

The companies are special-purpose vehicles owning diesel plants in Luzon, including a 52-megawatt plant in Bulacan, a 116-MW facility at the Subic Bay Freeport Zone and a 21-MW plant in La Union.

“The divestment will help ACEN achieve its goal of 100 percent renewable energy generation by end-2025,” the Ayala Group’s listed energy platform said.

Aside from the diesel exit, ACEN is also exploring the use of transition credits for the early retirement of its 246-MW South Luzon Thermal Energy Corp. plant in Batangas.

Eric Francia

The move aims to shut down the coal plant as early as 2030 and replace its generation output with clean power.

Transition credits are a type of carbon credit earned when coal plants are decommissioned ahead of schedule and replaced with renewable sources.

Carbon credits are tradeable certificates that represent one ton of carbon dioxide equivalent to greenhouse gas emissions reduced or removed from the atmosphere.

Governments and corporations with sustainability targets may purchase such credits to offset their emissions.

Earlier, ACEN president and CEO Eric Francia called on the government to intensify efforts in establishing the necessary policies to implement and adopt transition credits.

“We need the credits to be of high value to support the coal-to-clean transition because we need to take care of keeping the coal plant, the community, workers, investors, lenders and customers,” Francia said.

“The Philippine government will need to set up its carbon framework and policies. We need to have the proper registry, carbon registry and accounting system,” Francia added.